The National Payments Corporation of India on Wednesday said that UPI has emerged as the preferred mode of digital payment by offering free, fast, secure and seamless experience.
Traditionally, the most preferred method of UPI transactions is linking the bank account in any UPI enabled app for making payments which contributes over 99.9% of total UPI transactions, it added.
These bank account-to-account transactions continue to remain free for customers and merchants.
Recent regulatory guidelines, the Prepaid Payment Instruments (PPI Wallets) have been permitted to be part of the interoperable UPI ecosystem. In view of this, NPCI has now permitted the PPI wallets to be part of the interoperable UPI ecosystem.
The statement added that the interchange charges introduced are only applicable for the PPI merchant transactions and there is no charge to customers, and it is further clarified that there are no charges for the bank account to bank account based UPI payments (i.e. normal UPI payments).
With this addition to UPI, the customers will have the choice of using any bank accounts, RuPay Credit card and prepaid wallets on UPI enabled apps.
UPI merchant transactions via PPI will carry an interchange fee starting April 1, 2023 at 1.1 percent of the transaction value for transactions worth over Rs 2,000.
Every month, over 8 billion transactions are processed free for customers and merchants using bank-accounts, NPCI said.
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