UPI Transactions Above Rs 2,000 Chargeable?
Will UPI transactions be charged? For all the details check out the latest video.
Currently social media is abuzz with news that UPI transactions will be charged. Many WhatsApp and Instagram posts are saying that transactions above Rs 2,000, there will be a charge of 1.1%. Everyone started getting worried as everyone uses UPI. From buying cutting chai, paying rickshaw driver to shopping in big malls, everyone uses it to make payments. However there is a very big misunderstanding. If you use UPI to make payments regularly, then you must watch this video. But don’t worry, ISH News is going explain in a very way.
The whole thing started on 24th March 2023, when the National Payments Corporation of India (NPCI) recently released a circular in which it recommended a 1.1 per% interchange fee on UPI transactions above Rs 2,000. Since this circular created so much confusion, the NPCI clarified by saying that there is no charge for bank account to bank account based UPI payments. Normal UPI payments will be free of cost.
So now what about the 1.1% charges? Who will be pay that?
Now many people, companies, or businesses, have registered on PhonePe, MobiKwik, AmazonPay, GooglePay, etc. as a ‘Merchants’. This is like a business account. Now when you pay your meatwala Rs 2,200 using any UPI, then the meatwala will only receive Rs 2,175.80. The Rs 24.20 i.e 1.1% will be deducted and this money will go to the government. Remember this 1.1% fee rule will only be applicable on merchants who have monthly transactions of more than Rs 50,000. Merchants with monthly transactions less that Rs 50,000 will not have to pay the 1.1% fees. This rule will starting from 1st April 2023. Remember as a person, you can send money, make payments to anyone and you will not be charged. Atleast for now. Now that merchants are being charged 1.1%, will they increase price of the good? What will happen? We will have to wait for watch.
