This news may shock you if you frequently use Google Pay or Paytm to make purchases. Yes, UPI Transactions will cost more from April 1, 2023. This is because the National Payments Corporation of India (NPCI) has released a circular about payments via the Unified Payment Interface (UPI).
It has been suggested that beginning on April 1, merchant transactions made via UPI will be subject to a "Prepaid Payment Instruments (PPI)" fee. This move will impact numerous people.
Suggestion to impose a tax of 1.1 percent.
A 1.1 percent tax on transactions over Rs 2,000 has been proposed in the NPCI circular to go into effect on April 1. The merchant transaction, or the customers paying the merchants, will need to bear this fee.
Let us inform you that PPI applies to the wallet or credit card transactions. Card payments typically come with interchange fees. To accept transactions and pay charges, there is a fee.
Payments done through UPI will become expensive.
The National Payments Corporation (NPCI) said it would be reviewed by September 30, 2023. According to the NPCI circular, payments made through online services like Google Pay, Phone Pay, and Paytm would increase in cost as of April 1. Therefore, you will need more funds if you pay more than Rs 2,000.
Let us inform you that research found that 70% of UPI transactions are for amounts greater than Rs 2,000. The NPCI circular stated that the rule would be reviewed by September 30, 2023, following its implementation on April 1.