Fact check: Will customers have to pay 1.1% charge for UPI transactions over ₹2,000?

re is a rumour spreing around that customers will have to pay 1.1% for normal transactions over Rs 2,000 via UPI (Unified Payments Interface). Several media outlets have published stories on  same claiming that new rule will apply for normal UPI transactions from April 1. This comes after National Payments Corporation of India (NPCI) released a circular announcing Prepaid Payment Instruments (PPI wallets) which will now be part of interoperable UPI ecosystem. 

PIB busts fake news over UPI transaction charge

PIB Fact Check has clarified that such claims about UPI transcation charge from April 1 are false. "NPCI circular is about transactions using Prepaid Payment Instruments(PPI) like digital wallets. 99.9% transactions are not PPI," PIB Fact Check handle tweeted. "re is no charge on normal UPI transactions," it clearly stated. 

What does NPCI circular say?

new NPCI circular clearly states, " Prepaid Payment Instruments (PPI wallets) have been permitted to be part of interoperable UPI ecosystem. interchange charges introduced are only applicable for PPI merchant transactions and re is no charge to customers, and it is furr clarified that re are no charges for bank account to bank account based UPI payments (i.e. normal UPI payments)."

"With this dition to UPI, customers will have choice of using any bank accounts, RuPay credit card and prepaid wallets on UPI enable apps," circular furr res.