The PIB Fact Check has clarified that such claims about the UPI transcation charge from April 1 are false; Image: Shutterstock
There is a rumour spreading around that customers will have to pay 1.1% for normal transactions over Rs 2,000 via UPI (Unified Payments Interface). Several media outlets have published stories on the same claiming that the new rule will apply for normal UPI transactions from April 1. This comes after the National Payments Corporation of India (NPCI) released a circular announcing the Prepaid Payment Instruments (PPI wallets) which will now be part of the interoperable UPI ecosystem.
The PIB Fact Check has clarified that such claims about the UPI transcation charge from April 1 are false. "NPCI circular is about transactions using Prepaid Payment Instruments(PPI) like digital wallets. 99.9% transactions are not PPI," the PIB Fact Check handle tweeted. "There is no charge on normal UPI transactions," it clearly stated.
NPCI Press Release: UPI is free, fast, secure and seamless— NPCI (@NPCI_NPCI) March 29, 2023
Every month, over 8 billion transactions are processed free for customers and merchants using bank-accounts@EconomicTimes @FinancialXpress @businessline @bsindia @livemint @moneycontrolcom @timesofindia @dilipasbe pic.twitter.com/VpsdUt5u7U
The new NPCI circular clearly states, "The Prepaid Payment Instruments (PPI wallets) have been permitted to be part of interoperable UPI ecosystem. The interchange charges introduced are only applicable for the PPI merchant transactions and there is no charge to customers, and it is further clarified that there are no charges for the bank account to bank account based UPI payments (i.e. normal UPI payments)."
"With this addition to UPI, the customers will have the choice of using any bank accounts, RuPay credit card and prepaid wallets on UPI enable apps," the circular further reads.