UPI transactions through wallet to attract 1.1 % fee, other UPI transactions to remain free
The National Payments Corporation of India (NPCI) has permitted prepaid payment instruments (PPI) wallets to be part of the interoperable Unified Payments Interface (UPI) ecosystem, according to recent regulatory guidelines. UPI has emerged as the preferred mode of digital payment by offering free, fast, secure, and seamless experiences.Â
“No change in any charges regarding UPI payments from bank accounts. UPI continues to be free for Customers and Merchants for making payments from any bank account.”
Dilip Asbe, managing director and CEO, National Payments Corporation of India
About UPI Transaction Charges :
National Payments Corporation of India (NPCI) had issued an advisory on March 24, 2023 stating that UPI transactions made via prepaid instruments such as cards, wallets will now attract a fee of 1.1 percent for merchant payments from April 1. The interchange fee will be levied only to specified merchant transactions of above Rs 2,000.
Bank account-to-account transactions remain free for customers and merchants, and PPI merchant transactions will be subject to interchange charges. There are no charges for bank account-to-bank account based UPI payments.
With PPI wallets joining the UPI ecosystem, customers will now have the option of using any bank account, RuPay credit card, or prepaid wallet on UPI-enabled apps. The NPCI was established in 2008 as an umbrella organization for retail payments and settlement systems in India.
Â
