NPI - New Regulation for UPI payments | MBA in Business Analytics Bangalore

Posted by Prof. Rajesh AV On 13/04/2023 06:47:49

The National Payments Corporation of India (NPCI) is an initiative taken by the Reserve Bank of India (RBI) and the Indian Bank’s Association (IBA) to operate retail payments and settlement systems in India. This organisation was founded in the year 2008 under the Payment and Settlement Systems Act, of 2007. NPCI has been incorporated as a ‘not-for-profit company under section 8 of the Companies Act 2013. mba colleges in bangalore list

The National Payments Corporation of India (NPCI) serves as an umbrella body for the operation of retail payments in India. This organization was established by the Reserve Bank of India along with the Indian Bank’s Association. NPCI was incorporated in December 2008 and was centrally promoted by the Reserve Bank of India. The Certificate of Commencement of Business was issued in April 2009.

In the recent times, UPI has emerged as a preferred mode of digital payment by offering a free, fast, secure, and seamless experience. Traditionally. the most preferred method of UPI transactions is linking the Bank account in any UPI-enabled app for making payments which contributes over 99.9% of total UPI transactions. These Bank account-to-account transactions continue to remain free for Customers and Merchants. top 20 mba colleges in bangalore

New Rules For UPI Payments From Apr 1,

National Payment Corporation of India (NPCI) via its official Twitter handle has issued a statement clarifying that there is no charge to customers. As per the rule, the interchange charges are applicable for Prepaid Payment Instruments (PPI). This means that UPI transactions made via PPIs such as wallets, and credit cards will have an interchange fee of 1.1%. top ten mba colleges in bangalore

  • The National Payments Corporation of India (NPCI) today said that the interchange fees will only be applicable for the prepaid payment instruments (PPI) merchant transactions and there is no charge to customers. mba admission 2023 in bangalore
  • The interchange fee varies for the different categories of merchants. It ranges from 0.5% to 1.1% and a cap is also applicable in certain categories. 
  • The interchange fee will come into effect from April 1.
  • The move is reportedly aimed at increasing revenue for banks and payment service providers, who have been struggling with the high cost of UPI transactions. mba business analytics bangalore
  • The NPCI said that the interchange pricing will be reviewed by September 30, 2023.
  • Interchange will not be applied in the case of peer-to-peer (P2P) and peer-to-peer-merchant (P2PM) transactions.
  • There is also no charge for the bank account to bank account-based UPI payments or normal UPI payments, the NPCI clarified.
  • "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)," it said. mba courses in bangalore
  • Paytm also took to Twitter to clarify that customers will not have to shell out extra while making payments through the UPI mode. "Please be informed that Paytm UPI is free, fast, secure, and seamless. No customer will pay any charges on making payments from UPI either from the bank account or PPI/Paytm Wallet," it said in a tweet.
  • After the new rules, customers will have the choice of using any bank account, RuPay Credit card, and prepaid wallets on UPI-enabled apps. mba admission in bangalore 2023

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