Unified Payment Interface (UPI) has established itself as the preferred digital payment system by providing a free, fast, secure and seamless experience.
Traditionally, he said, the preferred method for UPI transactions is to link a bank account with any UPI-enabled app to make payments which contributes to more than 99.9% of total UPI transactions. However, UPI can now be used to send money through prepaid wallets like Paytm, Amazon Pay, Mobikwik and other prepaid wallets to UPI recipients using a QR code or UPI identifier.
The National Payments Corporation of India (NPCI) has enabled prepaid wallets (PPI) to become part of the UPI-enabled ecosystem and pay 1.1% on UPI transactions above Rs 2,000 when making use PPI. The introduced transaction fees apply only to PPI customer transactions and there is no charge for customers, it is further explained that there is no charge for bank deposit for bank account based UPI payments (i.e normal UPI payments).
Here’s everything you need to know about the latest UPI changes.
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Who will this benefit?
Those who load money into prepaid wallets but are not interested in linking their bank account with UPI can use the wallet for payments without linking their bank account with UPI. Stores will be able to accept UPI payments from these users.
Are there any new fees? For those using bank accounts for UPI payments, nothing changes. In new companies (wallets and UPI), department stores and for transactions above Rs 2000, the customer will pay 1%.
Are there any fees for the wallet user?
The wallet user will not get any fee for payment. To deposit money into a wallet using UPI, there will be no charge as long as the amount is less than Rs 2000, regardless of how often the user carries money. For downloads above Rs 2000, there will be a 0.15% charge of Rs 3 and Rs 2000.
Shouldn’t UPI be free?
The government mandated UPI to be free for the primary purpose of account to account transfers. When customers use UPI facilities to accept third-party applications (prepaid cards or credit cards), a fee will be charged.
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