UPI Transaction Charges 2023: Unified Payments Interface (UPI) has revolutionized the way we make digital transactions in India. It has made sending and receiving money as easy as sending a text message. Recently the national payment corporation of India also known as NPCI introduce a new policy of charges which was implemented from 1st April 2023 in which 1.1% inter charge fees was deducted by UPI transactions ₹2000 by prepaid payment instrument PPI the Google pay Paytm phone pay Apple pay Bharat pay at the some examples of PPI which was digital wallets. The interchange fees only applied for the merchant UPI transfer not for the day to day users and it will help to increase the revenue of banks and the platforms which provide UPI payment services. In this blog, we will discuss UPI transaction charges in 2023, its free limit, benefits, and the impact of NPCI interchange fees.
UPI Transaction Charges 2023
Unified payment interface (UPI) is a digital payment system which was developed and operated by the National Payments Corporation of India (NPCI). It helps users to transfer funds from one person’s bank account to another person’s bank account without the need of any Bank details. Now the national payment corporation of India (NPCI) has come up with a new rule in which whenever a customer transfers more than 2000 to a merchant 1.1% of the amount has been charged. It is not implemented in person to person transfer, it is only applicable at merchant level and bank to bank account transaction does not come under NPCI UPI charges 2023 rules. UPI transactions can be made 24/7, and the process is as simple as creating a Virtual Payment Address linked to your bank account.
UPI Free Limit GPay, PhonePe, PayTM, BharatPe
|Article Name||UPI Transaction Charges 2023|
|Implemented by||National Payment Corporation of India (NPCI)|
|Transaction Charges||1.1% on Transactions above Rs 2000/-|
|Date||From 1st April 2023, Saturday|
|UPI Free Limit||₹2000/- on Merchant ₹0/- on Customer|
|UPI||Unified Payments Interface|
|PPI||Prepaid Payment Instruments|
What is UPI, PPI and NPCI
The UPI stands for unified payment interface which is a real time payment system which allows the user to transfer money between the bank account instantly in just less than a minute. The PPI stands for prepaid payment instrument which is the digital payment wallet method that allows users to purchase goods and services without using physical cash. The NPCI stands for National Payments Corporation of India which is a not profit organization that operates the UPI and PPI system across the country and it is owned by a consortium of Indian banks and operates under the guidance of the Reserve Bank of India.
UPI Transaction Charges from April 2023
According to a recent update UPI Transaction Charges are the fees charged by merchants for processing UPI transactions with customers above 2000 rupees. The UPI inter charges will be increased when the amount of transaction above the 2000 rupees was deducted 1.1% charge by the merchant.
- For transactions up to Rs. 1,000, the UPI Transaction Charges are nil.
- For transactions of rupees 2000, the UPI transaction charges are Rs. 22 from this transaction.
- For transactions Rs. 10,000, the UPI transaction charges are Rs. 110 from this transaction.
NPCI UPI Provision Free Limit
The unified payment interface is the most important for every person who does financial transactions everyday and it can be a merchant or person to person because it is a very easy mode of financial transaction from mobile in just a few seconds. Now the UPI free limit has been fixed for the merchant it is rs 2000 per transaction for Google pay ,phone pay ,Bharat pay, Paytm Amazon pay every platform which uses UPI. If a customer pays under 2000 rupees then no charge will be deducted from the merchant but if the transaction money crosses the limit then 1.1% of the total amount of transaction will be deducted.
UPI Charges RBI Provision 2023
The unique payment interface has become the most important part of the customer’s daily life and this helps the customer to decrease the dependence on cash. To increase the use of UPI the NPCI decreased the UPI Transaction Charges from the merchant but recently UPI again implemented charges from 1st April 2023.
UPI Intercharges 2023 Unaffected by New provision
The UPI inter charges 2023 are unaffected for some peoples who are given below. If you fall in some kind of category these UPI Transaction Charges will become zero for you.
- If a person transfers money to another person then the transaction will not come under the charges deduction but if a consumer transfers the money to a merchant from the UPI then the charges will be deducted.
- As per the rules if a merchant having a small business with the monthly transaction of under rupees 50000 by UPI the charges will be not detected.
In summary, the new provision by the NPCI for UPI transaction has no impact for daily users and a merchant having under 50000 monthly transaction but if a merchant crosses the limit and does a transaction above 2000 then 1.1% of that amount will be deducted from the merchant account.
FAQs related to UPI Transaction Charges 2023
How much money will NPCI charge on UPI Payment?
The NPCI charge 1.1% on every UPI transaction above them from a merchant who has above 50,000 monthly transactions by UPI.
When was NPCI charged 1.1% from every UPI transaction above 2000 rupees?
From 1st April 2023 the NPCI charged 1.1% from every UPI transaction above 2000 rupees.