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

Leave a Comment
Share
Published by
piyush
1 year ago

Recent Posts

World’s AIDS Vaccine Day 2024: Date, Theme, History and Significance

World AIDS Vaccine Day, also known as HIV Vaccine Awareness Day, is observed annually on…

3 hours ago

Coal India, NMDC, ONGC Videsh Seek Overseas Critical Mineral Assets

The Indian government has announced plans for public sector companies like Coal India, NMDC, and…

5 hours ago

India’s April Trade Performance: Exports Inch Up, Trade Deficit Widens

In April, India's merchandise exports saw a modest 1% increase, reaching $34.99 billion, driven by…

6 hours ago

DPIIT Reports Over 7 Million Transactions on ONDC Platform in April

The Open Network for Digital Commerce (ONDC), a digital infrastructure initiative launched in 2021, has…

6 hours ago

SBI Raises Short-Term Retail Fixed Deposit Rates Amidst Economic Shifts

In response to rising credit demand and falling liquidity, State Bank of India (SBI) has…

6 hours ago

Indian Army Set to Receive Russian Igla-S Air Defence Systems

The Indian Army is poised to elevate its air defense capabilities with the impending delivery…

6 hours ago