1 April 2023, UPI transactions of Rs 2000/- made on PPI will be charged 1% fees
Starting April 1, any UPI transactions of more than Rs 2,000 made via prepaid payment instruments (PPI) like online wallets or pre-loaded gift cards etc, will carry an interchange fee.
The interchange fee is the fee to be paid to wallet issuers like banks, payment banks etc by payment service providers- e.g. Paytm, Phonepe, Google Pay etc. to cover the costs of accepting, processing, and authorising transactions.
Peer-to-peer (P2P) and peer-to-peer-merchant (P2PM) transactions between a bank account and a PPI wallet do not require an interchange, and the PPI issuer will pay the remitter bank approximately 15 basis points as a wallet-loading service charge.
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 pricing will come into effect starting April 1, 2023. NPCI will review the stated pricing on or before Sept. 30, 2023, the circular said