Will users be charged for UPI transactions above Rs 2,000 starting April 1, 2023? The answer is: No. However, there are some changes that the National Payments Corporation of India (NPCI) has recommended for UPI transactions but that will not impact general users in any manner, at least for the time being. So, what does the new rule by NPCI mean for consumers and merchants? Let’s simplify.Firstly, what does the new rule state: It is simple. The NPCI has recommended an interchange fee on UPI transactions of over Rs 2,000 made through Prepaid Payment Instruments (PPIs). In simple words, UPI payments made only through PPIs such as digital wallets (PayTM or PhonePe, or any other wallet) will attract 1.1 per cent fee if the value of the transaction is Rs 2000 and above. For instance: if a user is paying Rs 2000 or more to a merchant through a digital wallet after April 1, 2023, the merchant will be charged a certain fee for it. The NPCI calls it an “interchange fee”. This also means that payments made through bank accounts or UPI transactions will not be charged, regardless of the amount.
