UPI Updates: To use UPI will have to pay some charges, but not for common peoples

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Indian UPI system plays the biggest role in digital transactions, but recently many people are forwarding a wrong message on WhatsApp with this UPI. That said, free UPI will no longer be available from April 1. It is claimed that UPI payments above Rs 2,000 will be subject to a 1.1% fee from next month. But this claim is false. The National Payments Corporation of India (NPCI) cleared the confusion.

National Payments Corporation of India (NPCI) issued a statement through its official Twitter handle. It said, 'No charges will be deducted from customers. As per the new rules, NPCI has fixed the interchange charge, but it is levied only on merchants and it has been capped at 0.5 percent to 1.1 percent. 0.5% to 0.7% intercharge on energy, education, agriculture and utility payments. Apart from this, a maximum of 1.1 percent interchange may be payable at food shops, specialty retail outlets.

Bank account to bank account UPI payments i.e. normal UPI payments are still free of charge. 'Due to this addition to UPI, customers will have the option to use any bank account, RuPay credit card and prepaid wallet in a UPI enabled app.' This is what NPCI said on Twitter.

UPI is free, fast, secure and seamless, wrote NPCI's Twitter account. Every month, consumers and merchants transact more than 8 billion free transactions using bank-accounts.

 Nothing has changed for the common man. Nothing has changed for UPI bank transfer either. But if you make UPI payment through prepaid payment instrument (PPI) like wallet, credit card, then you have to pay interchange fee. In that case 1.1 percent surcharge has to be paid. Even when this transaction is more than 2 thousand rupees, the charge will be levied. It is exactly the same with debit cards and credit cards. Bank to bank transactions are still completely free. This charge has to be paid by the merchant.

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