UPI NOT FREE ANYMORE?
Merchant transactions using PPI on
UPI over Rs 2,000 will be charged at 1.1% from April 1

Gay, Paytm, other users need not worry about new surcharge; Know
reason

NPCI has permitted the PPI wallets to be part of interoperable UPI ecosystem and levied 1.1 per cent charge on unified payment interface (UPI)
transactions above $2,000 while using PPI.

Who will have to pay the surcharge?
When a customer will make a payment using PPl wallet to a merchant, the applicable surcharge will be levied from the merchant and not from the customer.

What does NPCI notice say?
According to the circular issued by the regulatory body, payments of $2,000 and above made through PPIs using UPI network to a merchant will be charged upto 1.1% interchange fee from April
1. Few merchants such as fuel service stations will be eligible for lower interchange fees on UPI payments to 0.5%. The pricing will be reviewed by
NPCI on September 30.

In its clarification, PCI said the surcharge will be charge only on PPI merchant transactions and not on the 'normal' way of bank-to-bank UP| transactions.
"Traditionally, the most preferred method of UPI transactions is linking the bank account in any UPI enabled app for makin payments which contributes over 99.9% of total UP| transactions. These account-to-account transactions continue to remain free for customers and merchants," it said in a circular.

According to PCI, payments above {2,000 made using UPI network will bear a surcharge or interchange fee of up to 1.1% if it is done from a PPI platform, such as Paytm Wallet, Phone Pe. It has recently clarified that the bank account-to-bank account payments (normal transactions) made using UPI won't attract any charge. It will be paid by merchants and not by customers.