Starting from April 1, merchants carrying out transactions through the Unified Payments Interface (UPI) using Prepaid Payment Instruments (PPI) will be subjected to charges, according to a circular issued by the National Payments Corporation of India (NPCI).
NPCI’s Prepaid Payment Instruments (PPI):
The National Payments Corporation of India (NPCI) has issued a circular stating that merchants conducting transactions on the Unified Payments Interface (UPI) using Prepaid Payment Instruments (PPI) will be charged an interchange fee of 1.1% on the transaction amount for amounts over Rs 2,000.
For merchant categories under industry programs, the interchange fee is different. In addition, a wallet-loading service charge of approximately 15 basis points will be paid by the PPI issuer to the remitter bank, but no interchange fee will be applied to peer-to-peer (P2P) and peer-to-peer-merchant (P2PM) transactions between bank accounts and PPI wallets.
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