Guwahati: The National Payments Corporation of India (NPCI) in a recent statement suggested the implementation of an interchange fee for transactions using the Unified Payments Interface (UPI) effective on April 1.
Using prepaid payment instruments (PPI) for UPI transactions will result in interchange of 1.1% of the transaction value for sums over Rs 2,000, according to a circular from the organisation in charge of overseeing these transactions, NPCI.
This interchange charge will pay for the expenses associated with accepting, processing and authorising transactions. Usually, this charge is added to credit or debit card purchases.
For P2P and P2M transactions between a bank account and a PPI wallet, the PPI issuer will be required to pay the remitter bank roughly 15 basis points as service fees for wallet filling.
The announcement further stated that gasoline contributes for 0.5% of interchange with telecom, utilities/post offices, education and agriculture coming in at 0.7%, 0.9% and agriculture, mutual funds, government, insurance and railways at 1%, respectively.
The circular further stated that NPCI will review the state price by September 30, 2023 and that the valuing would start to take effect on April 1, 2023.