UPI Payment Rules Change to Be Effective on April 1 2023 – All That You Need to Know

UPI Payment Rules Change to Be Effective on April 1 2023 - All That You Need to Know

A few new rules will be applicable with respect to UPI payments from April 1, 2023. However, the ruling body confirmed that customers will not be burdened by the new rules.

In an earlier circular floated by National Payments Corporation of India (NPCI), it was reported that users will need to pay 1.1% of the transaction value, in the case the transaction is over Rs 2,000 for using PPIs (Prepaid Payment Instruments) in UPI.

The new information was met with confusion among many netizens, who wondered whether they would be made to pay a 1.1% fee of the transaction value, if it goes above Rs 2,000. However, the NCPL took to Twitter on Tuesday, and confirmed that the interchange charges will only be applicable to the PPI merchant transactions and there won’t be any surcharge to customers.

“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),” said an NCPI release.

“With this addition to UPI, the Customers will have the choice of using any bank accounts, RuPay Credit card and prepaid wallets on UPI enabled apps,” the circular further read.

The Facts of the Matter

Unified Payments Interface (UPI) is a payment system developed by the National Payments Corporation of India (NPCI), which allows users to transfer money between bank accounts instantly using their smartphones  Thanks to being easy and convenient and having no to low transaction cost, it has helped millions of Indians across the world to simply pull their phone out, make a payment, and walk away stress-free.

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NPCI Puts Indians Under Conundrum

However, a circular by the NPCI recently put a lot of Indians under conundrum, who wondered whether they would be charged for making UPI payments. It so happened that the NCPI announced a 1.1% fee levied on UPI transactions for transactions over Rs 2,000.

This announcement was met with a huge uprorar, with many taking to Twitter, and tagging the NCPI’s account to clear their confusion. Amid all the confusion, NCPI once againt ook to Twitter, and issued a clarification regarding the charges.

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NCPI Issues Clarification

In its clarification, NCPI said that from April 1, 2023, a 1.1% intercharge will be applicable for Prepaid Payment Instruments (PPIs) merchant transactions. It also confirmed that customers making regular payments will not have to pay a 1.1% charge over the Rs 2,000 transactions, as was earlier reported.

“Recent regulatory guidelines, the Prepaid Payment Instruments (PPI Wallets) have been permitted to be part of interoperable UPI ecosystem. In view of this NPCI has now permitted the PPI wallets to be part of interoperable UPI ecosystem,” NCPI in its statement said.

“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),” the statement further read.

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Paytm Also Clears Confusion

Payment giant Paytm also took to Twitter and joined forces with NCPI to clear any confusions regarding the matter. “Regarding NPCI circular on interchange fees & wallet interoperability, no customer will pay any charges on making payments from #UPI either from bank account or PPI/Paytm Wallet. Please do not spread misinformation. #Mobile payments will continue to drive our economy forward!” it tweeted.

 

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The post UPI Payment Rules Change to Be Effective on April 1 2023 – All That You Need to Know first appeared on Shiksha News.

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