The National Payments Corporation of India (NPCI), in its latest circular, stated that all merchant transactions made above Rs 2,000 via Unified Payments Interface (UPI) will be charged from April.
New Delhi: The National Payments Corporation of India (NPCI), in its latest circular, stated that all merchant transactions made above Rs 2,000 via Unified Payments Interface (UPI) will be charged from April 1. As per NPCI – the governing body of the UPI payment system – , all merchant transactions above Rs 2,000 will be charged 1.1 per cent from next month.
“Interchange at the rate of 1.1 per cent of the transaction value/amount (using prepaid payment instruments, or PPI) shall apply to payments made to all online merchants, large merchants and small offline merchants having transaction value/ amount greater than Rs 2,000,” NPCI said in a recent circular.
NPCI will review the stated pricing on or before September 30, 2023, the circular said, according to a report by Business Standard.
On Monday, Paytm Payments Bank (PPBL), the largest issuer of KYC wallets (prepaid instruments) with over 100 million users, said that its full KYC wallet customers will be able to make payments on every UPI QR codes and online merchant where UPI payments are accepted. The National Payments Corporation of India (NPCI) announced Wallet interoperability guidelines on March 24.
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“As the pioneer of mobile payments and QR based payments, this move presents incredible growth opportunities for India’s payment ecosystem. In line with RBI’s mission of making ‘Har Payment Digital’, we are the largest acquirer for UPI merchant payments,” a Paytm Payments Bank Spokesperson said in a statement.
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From now on, the company said that the Bank will earn 1.1 per cent interchange revenue when Paytm Wallet customers (i.e., the KYC wallets issued by Paytm Payments Bank) make payments on merchants acquired by other payment aggregators or banks.
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Last year, the Reserve Bank of India (RBI) sought feedback from the public on the various changes proposed in the payments system, including the possibility of imposing tiered charges on transactions done through the Unified Payments Interface (UPI).
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In India, the RTGS and NEFT payment systems are owned and operated by RBI. Systems like IMPS, RuPay, UPI, etc, are owned and operated by the National Payments Corporation of India (NPCI), which is a not-for-profit entity promoted by banks. The other entities like card networks, PPI issuers, etc, are profit-maximising private entities.
