Breaking News: Payment Shock for UPI Users!

The National Payments Corporation of India (NPCI) has just announced a shocking update that will affect your daily transactions.

Attention all UPI users! You're in for a big shock! The National Payments Corporation of India (NPCI) has just announced a shocking update that will affect your daily transactions. This news has caused a lot of confusion and panic among UPI users.

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What's the big deal, you ask? Well, brace yourselves because starting from April 1, 2023, a new interchange fee of 1.1% will be charged on merchant UPI transactions of over ₹2,000 using prepaid payment instruments (PPIs) - wallets or cards. That means you'll have to shell out extra money for every payment you make using a PPI.

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For those of you who don't know, PPIs are payment wallets, smart cards, magnetic chips, vouchers, mobile wallets, or any instrument that can be used to access a prepaid amount. And with this new fee, you'll have to pay extra even if you have a wallet of one particular company and make a payment to a merchant who has a wallet of another company.

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But don't worry, regular UPI transactions, the ones that are made directly from bank account to bank account, will remain free. You can still transfer money via UPI by entering the virtual payment address (VPA) of the receiver, account number and IFSC code or QR code.

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Charges for customers on every transaction = 0 Rs. Charges Charges for Merchants on every transaction= 1.1% on PPIs financial instrument (Amount >2000) Bank account to bank account using UPI = 0 Rs. Charges

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UPI users have been enjoying the convenience of free transactions since its inception. However, the National Payments Corporation of India (NPCI) has recently announced a new set of charges in the form of transaction fees for UPI services.

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Effective from April 1, 2023, merchants making UPI transactions over Rs. 2000 using prepaid payment instruments (PPIs) will be charged an interchange fee of 1.1%. This fee applies only to prepaid payment instruments and not to regular customer transactions or bank account-to-bank account based UPI payments, which remain free.

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