Rising India 2023: UPI Customer Never Pays For Payment Transaction, Clarifies NPCI Chief Dilip Asbe

Rising India 2023: National Payments Corporation of India (NPCI) CEO Dilip Asbe on Wednesday reiterated that there is no charge for the bank account to bank account-based UPI payments or normal UPI payments.

Speaking at the third edition of News18 Network’s Rising India Summit, Asbe said, “Customer never pays for any payment transaction, whether it’s a peer to peer or peer to merchant. Always merchant as a user of the payment system pays the nominal reasonable charges for the payment system.”

Asbe added that India is currently standing at 13% cash to GDP ratio.

“In 20 years time, we should be in the high, if not low single digits, if we want to call ourselves a developed economy,” he stated.

“The vision of the PM is that India’s public goods can be the public goods of the world. In the next 5 years, it won’t be far fetched to see countries using India’s payment stack,” Asbe highlighted.

Asbe added Singapore model has given confidence to the world that 2 countries can transact within seconds using UPI.

Moreover, NPCI has clarified that the interchange charges are only applicable for the prepaid payment instruments (PPI) merchant transactions and there is no charge to customers.

NPCI has permitted the PPI wallets to be part of interoperable UPI ecosystem and levied 1.1 per cent charge on unified payment interface (UPI) transactions above Rs 2,000 while using PPI.

“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 earlier said in a statement.

With this addition to UPI, the customers will have the choice of using any bank account, RuPay Credit card and prepaid wallets on UPI-enabled apps, it said.

In recent times, it said, UPI has emerged as the preferred mode of digital payment by offering free, fast, secure and seamless experience.

Traditionally, it said, the most preferred method of UPI transactions is linking the bank account in any UPI-enabled app for making payments which contribute over 99.9 per cent of total UPI transactions.

These bank account-to-account transactions continue to remain free for customers and merchants.

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