Categories: Banking

Government imposes surcharge for Google Pay and other payment apps

Starting from April 1, the National Payments Corporation of India (NPCI) has implemented interchange fees of up to 1.1 percent for prepaid payment instruments used in merchant UPI transactions. The fee, ranging from 0.5 percent and based on the merchant category code, will be charged for UPI payments exceeding ₹2,000 made to online merchants, large merchants, and small offline merchants.

Buy Prime Test Series for all Banking, SSC, Insurance & other exams

Need of The Interchange fee:

  • The purpose of imposing an interchange fee is to compensate for the expenses incurred by payment service providers in handling, verifying, and approving transactions.
  • Consequently, this fee increase is anticipated to result in higher transaction costs.
  • Wallet issuers such as banks receive payment from payment service providers in the form of interchange fees.
  • These wallets are primarily utilized for online transactions, such as those facilitated by Paytm, PhonePe, and Google Pay.

About National Payments Corporation of India (NPCI):

  • Under the ‘Payment and Settlement Systems Act, 2007,’ the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) jointly established the National Payments Corporation of India (NPCI) as an umbrella organization responsible for operating retail payment and settlement systems in India.
  • This non-profit company operates under the regulations of Section 25 of the Companies Act 1956, as amended in 2013.
  • Its primary aim is to provide both physical and electronic payment infrastructure to India’s entire banking system.
Piyush Shukla

Recent Posts

GK Quiz on Dr. B.R. Ambedkar, Questions and Answers

Dr. Bhimrao Ramji Ambedkar, also known as the "Father of the Indian Constitution," was a…

11 hours ago

List of RBI Governors of India 1935 to 2024

The RBI Governor is the Chief Executive Officer of the Central Bank of India and the…

11 hours ago

Chaudhary Charan Singh Biography- Age, Political Career, Contributions and Awards

Chaudhary Charan Singh (23 December 1902 – 29 May 1987) was a prominent Indian politician…

11 hours ago

What is the Old Name of Rajasthan?

Rajasthan is a state in north-western India, known for its rich history, beautiful palaces, forts…

11 hours ago

PV Sindhu Biography- Age, Marriage, Career, Records and Net Worth

PV Sindhu is one of India's most celebrated badminton players, known for her exceptional skills,…

13 hours ago

Top-10 Most Expensive Woods in the World, Check the List

Wood is a natural material used in furniture, tools and decoration. It comes from trees…

13 hours ago