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.

You may also read this:

Find More News Related to Banking

Piyush Shukla

Leave a Comment
Share
Published by
Piyush Shukla
3 years ago

Recent Posts

BRICS Summits 2009-2026: Themes, Host Countries and Major Outcomes

Since the time of the first summit held in 2009, there has been much change…

1 hour ago

BRICS Members in 2026: Which Country Has the Highest GDP and Where Does India Rank?

The group of BRICS countries has grown considerably, with 11 leading emerging economies belonging to…

2 hours ago

Who Is Sudhakar Dalela? India’s BRICS Sherpa 2026, Role and Key Agenda

As India is organizing the 18th BRICS Summit in New Delhi from September 12 to…

3 hours ago

UPI Gets Tap-to-Pay and Unified Transaction View Features

The Reserve Bank of India (RBI) has come up with an innovative digital payment features…

3 hours ago

BRICS Summit 2026: Full List of Leaders and Dignitaries in Delhi

India’s New Delhi is all set to host the BRICS Summit 2026 on September 12…

4 hours ago

Which Indian State Shares Borders With Nepal, Bhutan and Bangladesh?

West Bengal is the only Indian state that has international boundaries with the countries of…

5 hours ago