Which UPI payments will attract interchange fee?
The National Payments Corporation of India (NPCI) has suggested that United Payments Interface (UPI) transactions made via prepaid instruments
such as wallets will attract an interchange fee of 1.1 per cent for certain merchant payments from April 1, 2023.
The 1.1 per cent interchange fee will be levied only on merchant payments of above Rs 2,000 to specified merchant categories, according to a circular by NPCI dated March 24, 2023.
However, there will be no fee if the transaction amount is up to Rs 2,000.
Which transactions will attract a fee from April 1, 2023? ET Wealth decodes how this new rule will affect you.
As per the circular by NPCI, certain UPI merchant transactions made via prepaid instruments will carry an interchange fee of up to 1.1 per cent of the transaction amount.
The interchange fee will be applicable on specified categories of merchants such as online merchants, large merchants, and small merchants for transactions of over Rs 2,000 from April 1, 2023.
The interchange fee will not be applicable to peer-to-peer (P2P) transactions or peer-to-peer-merchant (P2PM) transactions between a bank and the prepaid wallet, said NPCI.