BUSINESS
UPI Charges: Diwali is over; will UPI payments now be charged? Learn when NPCI will implement the rules
UPI Charge News: NPCI may implement new rules for UPI payments after Diwali. Find out when the new charges will begin, how much will be deducted, and who will be required to pay them.
UPI Payment New Rules: The excitement of Diwali has faded, and now there's widespread discussion about new rules related to UPI payments. The National Payments Corporation of India (NPCI) had decided to implement a Merchant Discount Rate (MDR) on UPI payments. Initially, it was scheduled to begin on October 15th, but was postponed due to the festive season (Diwali). Now that Diwali has passed, questions arise about whether this rule will be implemented. If so, when will it be implemented, and how much money will be deducted? Let's find out what NPCI is planning...
Will UPI deduct money from the common man's pocket?
If you're a customer, there's no need to panic. This new charge (MDR) applies only to shopkeepers and merchants. When a shopkeeper receives a payment on their business QR code (P2M - Person to Merchant), the fee will be paid by the bank or payment company, not you. Whether you send ₹100 or ₹10,000, not a single extra penny will be deducted from your bank account.
What will happen if I send money to friends and relatives through UPI?
Whether you're sending money to a friend to split a bill, transferring money to family, or transferring money from one account to another (Person-to-Person or P2P), it's completely free. No new rules or charges apply to mutual transactions.
What is the new rule for shopkeepers?
According to NPCI's new rules, shopkeepers will only be charged for payments above ₹2,000. Payments up to ₹2,000 will be free of charge. For example, if a shopkeeper accepts a payment of ₹1 lakh via UPI, the fee should be ₹400 based on 0.4%. However, NPCI has set a maximum limit of ₹300, so only ₹300 will be deducted from the shopkeeper's account.
How much money will be deducted where?
|
Normal Business Payment (above ₹2000) |
0.4% fee |
A maximum of ₹300 will be deducted at a time (no matter how big the payment is). |
|
Petrol Pump, Railways, Telecom, Insurance |
Just ₹5 (Fixed) |
A flat ₹5 charge will be applicable for payments above ₹2000. |
|
Stock market, mutual funds |
0.02% fee |
In this also, maximum ₹300 will be deducted. |
When will the new UPI rule come into effect?
In its October 13th statement, the NPCI stated that the implementation would be implemented immediately after Diwali to avoid additional burden on shopkeepers during the festive season. Now that the festive season is over, it is believed that the NPCI may announce the implementation date sometime this month, i.e., November. However, no official information has yet been released.
Image Credit: Gemini
