In a circular, the National Payments Corporation of India (NPCI) recommended adding “Prepaid Payment Instruments (PPI)” fees to merchant transactions made using the Unified Payments Interface. (UPI).
The UPI payment system’s regulatory council also stated that PPI costs will be assessed on transactions worth more than 2,000 on UPI. There will be an interchange at the rate of 1.1% of the transaction’s value.
The interchange charge is assessed to defray the expenses associated with transaction authorization, processing, and acceptance. This will probably increase the price of the transaction. The new regulation will go into effect on April 1.
The circular stated that for loading a transaction value exceeding 2,000, the issuer of prepaid instruments would additionally be required to pay 15 basis points of the cost to the remitter bank.
Notably, the fee will not be charged for transactions between a bank and the prepaid wallet made between individuals or between individuals and merchants.
The mentioned price will be reviewed by NPCI no later than September 30.
