No charge on UPI payments, it is 'FREE': NPCI | Tech News

No charge on UPI payments, it is 'FREE': NPCI

The National Payments Corporation of India (NPCI) has clarified that there will be no charges on UPI payment. Check details.

| Updated on: Mar 30 2023, 14:59 IST
Safe online payment tricks: Know 5 easy ways to keep your money safe on UPI, Net banking
UPI payments
1/6 Do you use Unified Payment Interface (UPI) linked payment-making applications like Google Pay (GPay), Paytm, PhonePe, among others? The process of making online payment via these apps is simple, however, sometimes even a simple mistake like wrong click, number, among others can cause you huge monetary loss. Here are some of the safety tips which you should consider while making UPI payments. (Bloomberg)
UPI payments
2/6 Screen lock: Keeping a strong screen lock, password or PIN not only for your phone but also for all payment or financial transaction apps is very important. It not only saves your phone from landing in the wrong hands but also helps in avoiding leaking of personal and crucial details. However, you should avoid keeping simple passwords like your name, date of birth, mobile number, etc. (Pixabay)
UPI payments
3/6 Do not share your PIN: You should never share your PIN with anyone. Sharing your PIN makes you vulnerable for frauds as anyone can access your phone and transfer the amount. In case you feel that your PIN has been exposed, you should change it immediately. (Saumya Khandelwal/HT PHOTO)
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4/6 Do not click on unverified links or attend fake calls: Lots of fake messages containing links of some unverified keeps on popping in your inbox. You should avoid clicking on such links as it can cause you huge financial losses. You should also avoid picking up fake calls. The caller pretends to be calling from your bank or some other organisation and can ask you for your details like PIN, OTP, etc. Hackers usually share links or make calls and ask users to download a third-party app for verification. It can be noted that banks never ask for PIN, OTP or any other personal details. (Reuters)
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5/6 Keep updating UPI App regularly: Every application requires an update and each update brings better features and benefits. You should always keep updating the UPI payment app to the latest version. (Unsplash)
UPI payments
6/6 Avoid using multiple payment applications: You should avoid keeping multiple payment applications in your phone and should install only the trusted and verified payment applications from the PlayStore or App Store. (Bloomberg)
UPI payments
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UPI payments will remain charge-free, NCPI has explained. (Google Pay India Twitter)

Do you make UPI transactions and are worried if you will have to pay charges for the same? There were several reports claiming that charges will be levied on UPI payments. However, the National Payments Corporation of India (NPCI) has now clarified that there will be no charges for the bank account to bank account-based UPI payments that are normal UPI payments. It further stated that the recently introduced interchange charges are only applicable for the prepaid payment instruments (PPI) transactions and there is no charge to customers.

NCPI says UPI transactions will remain free of charge

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"UPI is free, fast, secure and seamless... Every month, over 8 billion transactions are processed free for customers and merchants using bank-accounts," NPCI tweeted. While in a release, it stated, "Traditionally, the most preferred method of UPI transactions is linking the Bank account in any UPI enabled app for making payments which contributes over 99.9% of total UPI transactions. These Bank account-to-account transactions continue to remain free for Customers and Merchants."

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"Recent regulatory guidelines, the Prepaid Payment Instruments (PPI Wallets) have been permitted to be part of the interoperable UPI ecosystem. In view of this NPCI has now permitted the PPI wallets to be part of the interoperable UPI ecosystem. The interchange charges introduced are only applicable for the PPI merchant transactions and there is no charge to customers, and it is further clarified that there are no charges for the bank account to bank account based UPI payments (i.e. normal UPI payments)," NPCI added.

With this addition to UPI, customers will have the choice of using any bank accounts, RuPay Credit card and prepaid wallet on UPI enabled apps.

Notably, in a recent circular, the NPCI reportedly said that using prepaid payment instruments (PPIs) - gift cards, wallets, among others -- for transactions through UPI will attract an interchange fee of up to 1.1 percent starting April 1. The charges will be levied if the transaction is more than Rs. 2000, a report by ANI informed.

Some of the major UPI apps being used by a majority of people are GooglePay, PhonePe, Paytm, and more.

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First Published Date: 30 Mar, 14:59 IST