According to the latest information, the National Payment Corporation of India (NPCI) has suggested that the payment made through Unified Payment Interface (UPI) transactions made via prepaid instruments, such as wallets will attract an interchange fee of 1.1 percent surcharge for particular payment merchants from April 1, 2023. The circular released by NPCI says that 1.1 percent of the fee will be levied on the merchant payment above Rs 2,000 to specified merchant categories. However, there will be no transaction fee up to Rs 2,000. The interchange fee varies across the categories, ranging from 0.5 percent to 1.1 percent, and the cap is also applicable to a few categories. The notification also says, the payments body clarified that no charges will be levied on normal UPI payments which it termed as “bank account-to-bank account-based UPI payments.” This means, the interchange charges introduced are only applicable for PPI merchant transactions and there is no charge to customers. Clarifying it further, Peer-to-peer or peer-to-peer-merchant transactions between a bank and a prepaid wallet will not be subject to the interchange fee, according to NPCI. Small firms with estimated monthly inward UPI transactions of less than or equal to Rs 50,000 fall under the P2PM category according to the NPCI. So, you wont be charged an interchange fee if you send money to friends, family, or any other person or a small company merchants bank account. PPI wallets had been permitted part of the interoperable UPI ecosystem.Limit fixed for UPI transactionsHere is the big news for the users who use UPI to make their transactions easy. The move will affect millions of users across India. All companies like Google Pay (GPay), Phone Pay (PhonePe), Amazon Pay (Amazon Pay) and Paytm (Paytm) have fixed the limit for doing transactions every day, which will affect many people. According to the new guidelines issued by the National Payment Corporation of India, a person can only transact the amount of Rs 1 lakh in a day, and the limit has been fixed at Rs 25,000 for small banks. Which payment will attract an interchange feeAccording to the new guidelines issued by NPCI, an interchange fee will be levied for all prepaid payment instruments. The Paytm wallet, PhonePe wallet, Amazon Pay wallet, MobiKwik wallet, and SODEXO coupons are a few examples of wallets. Prepaid payment tools include magnetised chips, smart cards, vouchers, and wallets.Where it will not applyFor peer-to-peer and peer-to-peer-merchant (P2PM) transactions, exchange will not be used. For transactions totalling more over Rs 2,000, PPP issuers would be obliged to pay the remitter bank a wallet-loading fee of 15 basis points (bps). The pricing will be reviewed by NPCI no later than September 30, 2023.Limit through Amazon PayAmazon Pay has set the maximum amount that can be paid through UPI to Rs 1 lakh. The user can only make transactions up to Rs 5000 in the first 24 hours after signing up for Amazon Pay UPI. The number of transactions has also been set at 20 per day based on the bank.Limit through PaytmA restriction of up to Rs 1 lakh has been set by Paytm UPI for consumers. Paytm has also transferred the hourly cap along with this. Paytm has said that you can only complete 20,000 transactions per hour at this time. In addition, only 5 transactions can be completed per hour and 20 transactions can be completed in a day.Limit through PhonepeSimilar to Paytm, Phonepe also allows transactions of Rs 1 lakh a day. However, there is no limit to the minimum or hourly transaction in this app. Limit through Google Pay or GPayGoogle pay does not allow you to make the transaction for more than Rs 1 lakh a day. And, the count of the total transaction is kept at 10 in this app. Either, a user can make one transaction of Rs 1 lakh or 10 transactions which does not make it more than Rs 1 lakh.
