The governing body of the UPI payment system added that the PPI fees would be levied on transactions above ₹2,000 on UPI. It will result in an interchange at 1.1% of the transaction value.
The interchange fee is levied to cover the costs of accepting, processing, and authorising transactions. This is likely to make the transaction costlier. The new rule will be implemented from 1 April.
The issuer of prepaid instruments will also be required to pay 15 basis points of the fee to the remitter bank for loading a transaction value above ₹2,000, the circular said. Notably, the fee will not be applicable to person-to-person transactions or person-to-merchant transactions between a bank and the prepaid wallet. NPCI will review the stated pricing on or before 30 September