NPCI cuts UPI usage fees for transactions up to Rs 1,000 by 60%

NPCI cuts UPI usage fees for transactions up to Rs 1,000 by 60%

New Delhi: In order to promote wider adoption of Unified Payments Interface (UPI), the National Payments Corporation of India (NPCI) has slashed the usage fees for transactions up to Rs 1,000 by 60%.

According to a report in the Economic Times, charges for UPI transactions up to Rs 1,000 have been cut to 10 paise from 25 paise earlier. However, the fee for transactions above Rs 1,000 has been retained at 50 paise.

The payments body has also brought down charges on incentive payments to the same rate as normal transactions under a fixed price regime of 10 paise to encourage such promotions by banks and digital wallets. Banks or payment service providers (PSPs) pay a fee to NCPI when they provide cashbacks to users for using the UPI platform. This charge is called incentive payment.

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According to the ET report, NPCI has also slashed charges on merchant transactions through UPI. In place of a transaction fee of 25 paise for transactions up to Rs 1,000 and 50 paise beyond that, NPCI has introduced a flat charge of 10 paise along with ad-valorem levy of 0.04% split between the acquiring bank and the issuing bank.

“The move from NPCI will not only help service providers like banks and third-party applications to aggressively push UPI, it will also help consumers in the long run as more cashbacks and incentives can get offered,” the ET report quoted a top executive at one of the largest payment service providers in the country as saying.

Experts believe as top PSPs are well funded, the benefit in transaction charges will be passed on to consumers. “The move will remove further barriers for the overall ecosystem to grow,” Vivek Belgavi, fintech leader at consultancy firm PwC India, told the business daily.

 

Source:- timesnownews

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