UPI PAYMENTS WILL ATTRACT INTERCHANGE FEE. WHAT DOES NCPI SAY? FACT CHECK ABOUT THIS NEWS
The media has been inundated with news indicating that UPI transactions exceeding Rs 2,000 will be taxed at 1.1% ever since UPI regulating body National Payment corporation of India's (NPCI) circular on UPI was published. In its most recent fact-check tweet, PIB debunked the media stories and stated that the aforementioned assertions are false. These reports fail to capture the NCPI circulation's true essence.
The media has been inundated with news indicating that UPI transactions exceeding Rs 2,000 will be taxed at 1.1% ever since UPI regulating body National Payment Corporation of India's (NPCI) circular on UPI was published. In its most recent fact-check tweet, PIB debunked the media stories and stated that the aforementioned assertions are false. These reports fail to capture the NCPI circulation's true essence.
A fee of 1.1% will be charged starting on April 1, 2023, for UPI transactions made using prepaid payment instruments that total more than Rs 2000. Also, it will be used when adding money to wallets via UPI. UPI bank-to-bank transfers are free of charge.
"There is no fee on routine UPI transactions," PIB tweeted. It was also stated that the circular relates to payments made through PPIs, such as digital wallets. In 99.9% of cases, PPI is not used.
The PIB fact check refutes media claims that stated UPI transactions over Rs 2000 will incur a 1.1% fee.
It was also stated that the circular relates to payments made through PPIs, such as digital wallets. In 99.9% of cases, PPI is not used. From April 1, 2023, UPI transactions using PPIs that exceed Rs 2000 would be subject to an interchange fee of up to 1.1%, according to NPCI.
The interchange charge has been implemented by NPCI for P2M transactions (for higher than 2K value) that would happen on the wallet under the UPI framework, according to Ramesh Narasimhan, CEO of Worldline India. These wallets are currently served separately by the different PPI issuers, and interchange was also managed separately by each of them. Now that the interchange for P2M transactions has been rationalized, NPCI governance will be applied to it.
The interchange circular, he noted, "is only rationalizing the interchange of wallets and bringing it under the purview of NPCI. The other advantage is that moving forward, all wallets will be available from all banks that support UPI acquiring as it will be part of the stack (UPI, RuPay Credit Card, and PPI Wallets)."
What's Your Reaction?
