No charge on UPI payment, merchant payment will be chargeable

National Payments Corporation of India (NPCI) announced that bank to bank account transfer via UPI will continue to remain free but any merchant payment that goes through two different wallets will be chargeable above Rs 2,000.

The interoperable charge of 1.1 per cent for each transaction above Rs 2,000 will be payable by merchant from April 1.

“Interchange charges are only applicable for the prepaid payment instruments (PPI) merchant transactions and there is no charge to customers,” NPCI, payment gateway, clarified in a statement.

“UPI is free, fast, secure and seamless. Every month, over 8 billion transactions are processed free for customers and merchants using bank-accounts,” NPCI says.