A recent circular from the National Payments Corporation of India (NPCI) suggests that the following charges will be applicable on Prepaid Payment Instrument (PPI) charges for merchant transactions carried through the Unified Payments Interface (UPI) from April 1.
According to latest data by National Payments Corporation of India (NPCI), the payments made through UPI dipped 4.8 per cent, month-on-month (MoM) to Rs 12.36 lakh crore in value in February from Rs 12.98 lakh crore in January.
Using PPIs on UPI from will attract interchange at 1.1 percent on transaction value for amounts over Rs 2,000. For industry programme merchant category codes, the interchange is as follows:
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The PPI issuer will pay about 15 basis point as a wallet-loading service charge to the remitter bank and an interchange is not applicable in terms of peer-to-peer (P2P) and peer-to-peer-merchant (P2PM) transactions between bank account and PPI wallet.
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The PPI issuer will pay about 15 basis point as a wallet-loading service charge to the remitter bank and an interchange is not applicable in terms of peer-to-peer (P2P) and peer-to-peer-merchant (P2PM) transactions between bank account and PPI wallet.
Introduction of interchange is in the range of 0.5-1.1 percent, with interchange being 0.5 per cent for fuel, 0.7 per cent for telecom, utilities/post office, education, agriculture, 0.9 per cent for supermarket and 1 per cent for mutual fund, government, insurance and railways.
The interchange fee is typically associated with card payments and is levied to cover the costs of accepting, processing, and authorising transactions.
The pricing will come into effect starting April 1, 2023. NPCI will review the stated pricing on or before Sept. 30, 2023, the circular said.
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