Crores of people of the country are going to face another blow of inflation from April 1. UPI transactions may get costlier from the new financial year. Recently, a circular has been issued by the National Payments Corporation of India (NPCI) regarding UPI. The circular suggested levying an additional charge on merchant transactions through UPI. Simply put, Paytm, Google Pay, PhonePe, Paytm, Google Pay (GPay), PhonePe, may have to pay a charge on the app.
1.1 percent surcharge may be imposed
The habit of paying with UPI can now cost you dearly. NPCI has recommended levy of ‘Prepaid Payment Instruments (PPI)’ charges on merchant transactions through UPI. The circular suggested levying a charge of 1.1 per cent on transactions above Rs 2,000. However, NPCI has only recommended charging. If this charge is imposed, crores of people will be affected by it.
Digital payment will be affected
70 per cent of the payments through UPI are of value above Rs 2,000. If the National Payments Corporation of India (NPCI) imposes a charge, then there may be a decrease in digital mode payments.
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