UPI Payment New Rules
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UPI Payment New Rules Applicable from 1st April 2023

Unified Payment Interface (UPI) is the most happening thing currently all across the world. People dwelling in every corner of the metropolitan cities, towns, and even villages are happened to be using UPI for making payments be it one rupee or thousands of rupees with just a click of a button. However, until today, we all lived in a constant state of making payments through UPI without hassle but now the UPI payment new rules will restrict an individual to pay charges and this norm will be implemented from April 1st as this was discussed on Wednesday, 29th March 2023.

If you are still wondering if this whole news regarding UPI charges news is fake or real then let me burst the bubble for you in this article. The National Payments Corporation of India (NPCI) has lately refined that the financial institution’s account-to-account dealings with the help of UPI will continue to stick around free for customers and traders. Subsequently, an individual can still proceed with sending funds to a different account or to the mobile number that is directly linked to a bank account through UPI without any burden.

What are the UPI Payment New Charges?

Everyone now is hounding around this new topic which had indeed become a hot potato in every corner of the town. People are still happened to be in dilemma with this UPI payment new rules.

Concerning this factor the NPCI has vividly and precisely clarified the queries amongst people using UPI for their day-to-day transactions saying that the interchange fee is about 1.1% on UPI transactions that are above Rs 2000. NPCI has also made a concise statement saying that this is merely applicable to PPI(Prepaid Payment Instrument) merchant transactions, however, the customers are free from this burden.

From when will the UPI Payment New Rules applicable?

According to the latest curriculum furnished by the National Payments Corporation of India, it is claimed that UPI payment new rules will be implemented on the 1st of April, 2023 and this is solely confined to the merchants and not the customers.

Do I need to pay any UPI charges when sent to friends?

Fortunately, the interchange charges are not applied when the money is transferred among friends family, and others however this is solely applicable for the traders or the merchants when the funds exceed Rs 2000.

P2PM is the National Payment Curriculum of India category for petty business organisations that retain a lobbed monthly ingoing Unified Payment Interface dealing of either minimum or even up to INR 50,000. In case, if any individual is transferring money to your mates, household, or any person or a petty business merchant across the world through their bank account, that won’t entice any kind of interchange expense.

Which payment modes under UPI will be chargeable under this new norm?

According to the curriculum of NPCI UPI charges, only specific trader transactions processed through prepaid payment tools will draw in the interchange charges. Smart cards, coupons, virtual wallet, and magnetised pieces dive restrict prepaid payment tools. Here are a bunch of instances of virtual wallets: the MobiKwik wallet, Google Pay wallet, Amazon Pay, Paytm wallet and PhonePe wallet,

Let’s say, you hold some cash in your Google Pay or any other virtual wallet and you head to a mart and use the scanner to derive the QR(quick response) code and make payment through your virtual wallet assistance. If the dealing expenditure is more than INR 2,000, a dealing charge of 1.1 percent will be imposed.

Does this aid the payment service providers in any way?

Well, the prime reason to bring this decision up is to ensure that the payment service providers are benefiting in a good way. Now with 1.1% charges the profitability ratio of the payment-providing companies will enhance and they can certainly do well in the market.

The low transaction charges have always hindered the service providers in gaining peanuts which barely did any gain for the company.

All in all, this article was all about unveiling the facts of the UPI Payment New Charges and who is the ultimate beneficiary of this new norm. Nevertheless, we need to wait until enforcement and evolution take place to draw any kind of conclusion. Moreover, this proposal is put forth by NPCI before the RBI which is the regulator, and this will proceed only if the RBI approves it after considerable research and discussion with the experts. Until then we need to stay hooked on the latest news to keep ourselves enlightened with the verdict.

Rohit Srivastava
"Rohit Srivastava is a professional writer/author/blogger/proofreader backed with 7 years of experience. Being a passionate writer, he is skilled in creating content that helps businesses grow. He truly believes that the content should be interesting, factual-based, captivating and additionally, he can write for any niche."

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