Are customers paying 1.1% on UPI transactions? Not so fast!
Delhi : Unified Payments Interface (UPI), according to some social media users, would now charge all of its clients a 1.1 percent fee for UPI transactions of Rs 2000 or more.
The allegation further indicates that the new regulation will take effect on April 1.
But who will actually pay an interchange fee of 1.1 percent?
According to the National Payment Corporation of India (NPCI), the consumer won't be assessed the alleged cost of 1.1 percent.
In addition, NPCI announced that interchange fees—a charge made by one bank to another for executing a transaction—would be implemented as of April 1, would only be charged for purchases made by merchants using prepaid payment instruments that cost more than Rs 2000. (PPI).
UPI transactions conducted using wallets and credit cards are included in PPI transactions.