The UPI payment system’s governing body also stated that PPI fees would be levied on UPI transactions exceeding Rs. 2,000. The interchange will be 1.1% of the transaction value.
The interchange fee is charged to cover the costs associated with accepting, processing, and authorising transactions. This is likely to increase the transaction’s cost. The new rule will go into effect on April 1.
The issuer of prepaid instruments will also be required to pay 15 basis points of the fee to the remitter bank for loading a transaction value above Rs. 2,000, the circular said. Notably, the fee will not be applicable to person-to-person transactions or person-to-merchant transactions between a bank and the prepaid wallet. NPCI will review the stated pricing on or before 30 September