The National Payments Corporation of India (NPCI) has clarified that no charges would be imposed for normal UPI transactions, on customers or merchants vide a press release dated March 29, 2023.
The Prepaid Payment Instruments (PPI) wallets have been permitted by the NPCI, to be a part of the interoperable UPI ecosystem in light of the recent regulatory guidelines in this regard. However, if the value of the UPI transactions made through PPI wallets such as PhonePe Wallet, Paytm Wallet, etc. is more than Rs. 2,000/-, an interchange charge of 1.1% would be applicable. Such transactions would be chargeable with effect from April 1, 2023.
To avoid any confusion, the National Payments Corporation of India (NPCI) issued a clarification through the said press release, confirming that the said interchange charges apply only to PPI merchant transactions and no charge would be levied on customers. Moreover, the NPCI has expressly stated that no fee/ charge would be imposed on customers or merchants for bank account-to-bank account-based UPI transactions.