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Economy
Mahesh

01/04/23 08:41 AM IST

No charges on UPI

In News
  • The National Payments Corporation of India (NPCI) clarified about the recently introduced interchange charges, saying they are only applicable for the prepaid payment instruments (PPI) transactions and there is no charge to customers.
  • There are no charges for the bank account to bank account based UPI payments i.e. normal UPI payments
PPI
  • The RBI defines PPIs as payment instruments that facilitate the buying of goods and services, including the transfer of funds, financial services, and remittances, against the value stored within or on the instrument.
  • PPIs are in the form of payment wallets (like Paytm Wallet, Amazon Pay Wallet, PhonePe Wallet, etc.)), smart cards, mobile wallets, magnetic chips, vouchers, etc. As per the regulations, banks and NBFCs can issue PPIs.
NPCI
  • National Payment Corporation of India (NPCI) is an umbrella organization for operating retail payments settlement systems in India.
  • NPCI was established jointly by the Reserve Bank of India (RBI) and Indian Bank’s Association (IBA) under the Payment and Settlement Systems Act of 2007 for creating a robust Payment & Settlement Infrastructure in India.
  • NPCI facilitates all the retail payments in India.
  • NPCI operates the RuPay card network, which is India’s domestic card network.
  • NPCI operates the Unified Payments Interface (PUI), which is a real-time payments system that allows for instant payments between bank accounts.
About UPI
  • Unified Payments Interface (UPI) is a common platform through which a person can transfer money from his bank account to any other bank account in the country instantly using nothing but his/her UPI ID.
  • It was launched in 2016 as Mobile First digital payments platform
  • It enables immediate money transfer through mobile device round the clock 24*7 and 365 days based on the Immediate Payment Service (IMPS) platform so as to make cashless payments faster, easier and smoother.
  • UPI is completely interoperable and as such, it is unique in the world, where you have an interoperable system on the ‘send’ and ‘receive’ side.
Source- Live Mint

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