UPI Payment: Unified Payments Interface (UPI) is a mobile-based payment system developed by the National Payments Corporation of India (NPCI) that enables users to transfer funds instantly between bank accounts through a mobile device.

Starting from April 1, prepaid payment instrument (PPI) merchant transactions on the Unified Payments Interface (UPI) that exceed ₹2,000 will be charged an interchange fee of 1.1%.

Here are ten important facts about the new UPI payment rules:

1. The National Payments Corporation of India (NPCI) has confirmed that the interchange fee will not be applicable to customers, only to PPI merchants.
2. The interchange fee varies between different merchant categories, ranging from 0.5% to 1.1%, and certain categories have a cap.
3. The new interchange fee will be effective from April 1.
4. The goal of the change is to increase revenue for banks and payment service providers who have been struggling with the high cost of UPI transactions.
5. The NPCI will review the interchange pricing by September 30, 2023.
6. Interchange fees will not apply to peer-to-peer (P2P) and peer-to-peer-merchant (P2PM) transactions.
7. There is no charge for bank account-based UPI payments or normal UPI payments.
8. The NPCI clarified that the new interchange fee only applies to PPI merchant transactions, and customers will not be charged.
9. Paytm also confirmed on Twitter that no extra charges will be imposed on customers making payments through UPI.
10. After the new rules come into effect, customers will be able to choose any bank account, RuPay credit card, or prepaid wallet on UPI-enabled apps.

Here are some frequently asked questions (FAQs) related to UPI payments:

1. What is UPI payment? Unified Payments Interface (UPI) is a real-time payment system developed by the National Payments Corporation of India (NPCI) that enables users to transfer funds instantly between bank accounts through a mobile device. It allows users to make payments and transfers to individuals and merchants, pay utility bills, book travel tickets, and more, all with a few taps on their smartphone screen.
2. How do I use UPI payment? To use UPI payment, you need to have a bank account with a UPI-enabled bank and a UPI ID, which is a unique virtual ID that identifies your bank account. You can download a UPI-enabled app from your bank or a third-party provider, register your bank account, and create a UPI ID. Once your UPI ID is set up, you can use it to send and receive money, pay bills, and make purchases using UPI-enabled apps.
3. Is UPI payment safe? UPI payment is considered to be a safe and secure payment method. The system uses two-factor authentication (2FA), which requires users to enter a UPI PIN or a biometric authentication (such as fingerprint or iris scan) to confirm transactions. Additionally, UPI transactions are encrypted end-to-end, which means that the information is protected from unauthorized access.
4. Is there any charge for using UPI payment? There are no charges for using UPI payment for bank-to-bank transfers or normal UPI payments. However, some UPI-enabled apps may charge a fee for certain transactions or services, such as cash withdrawals or bill payments.
5. What is the maximum amount for UPI payment? The maximum amount for UPI payment varies depending on the bank and the UPI-enabled app you are using. The NPCI has set a limit of Rs. 1 lakh per transaction for UPI payments, but some banks may have a lower limit depending on their risk assessment policies.

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