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NPCI Clarifies UPI Charges: Are Standard UPI Payments Free?

By ThePip DeskNPCI Clarifies UPI Charges: Are Standard UPI Payments Free?

NPCI clarifies confusion over UPI charges, confirming standard payments remain free. Learn about the new PPI interchange fee for wallets over ₹2,000.

Social media rumors regarding potential surcharges on standard UPI transactions have triggered widespread confusion across digital payment users. The National Payments Corporation of India has confirmed that no charges have been imposed on customers for standard Unified Payments Interface payments.

The PPI Circular Fact Check

The confusion originated from a circular regarding Prepaid Payment Instruments, which includes digital wallets. Specific merchant transactions conducted via these wallets now attract an interchange fee when the amount crosses a certain threshold.

  • 1.1% interchange fee introduced for specific PPI merchant transactions.
  • ₹2,000 threshold triggers this specific interchange fee.
  • Merchant bears the cost rather than the individual consumer.

Steering Committee Evaluation

A newly formed UPI and Services Steering Committee is currently evaluating the feasibility of Merchant Discount Rate charges for transactions exceeding ₹2,000. This committee aims to balance merchant costs while sustaining the rapid growth of digital payments in India.

Bank-to-bank UPI transfers remain completely free for users. This ensures the ongoing cost-effectiveness and convenience of the UPI ecosystem for the general public.

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