wordpress blog stats
Connect with us

Hi, what are you looking for?

, ,

NPCI cuts UPI usage fees for small transactions from 25 paise to 10 paise


The National Payments Corporation of India (NPCI), which runs the Unified Payments Interface (UPI) network, has slashed usage fees for small transactions to encourage banks and payment service providers (PSPs) to adopt the system, the Economic Times reported. The report said NPCI has reduced:

  • charges on transactions up to Rs 1,000 from 25 paise to 10 paise while keeping the charge for transactions above Rs 1,000 unchanged at 50 paise.
  • incentive payments to a flat 10 paise per transaction. Earlier, these were charged at the same rate as normal transactions. Incentive payments are charges banks or PSPs pay NPCI when they credit the user’s bank account with cashbacks.
  • merchant transactions to flat 10 paise plus a 0.04% levy that will be split between the acquiring bank and the issuing bank. Merchant transactions up to Rs 1,000 earlier attracted at 25 paise fee, while those above Rs 1,000 were charged at 50 paise.

Government withdrew UPI incentives last year

In a surprising development last July, the central government withdrew several incentives for merchants and customers  using UPI. It completely dropped an initiative under which merchants got up to Rs 1,000 for accepting payments using UPI, and replaced another scheme that gave customers cashbacks of up to Rs 500 with one that gave rewards of up to Rs 150, only to users of its BHIM payments app.

UPI charges to hit customers soon

While all these charges apply only to banks and PSPs, Kotak Mahindra Bank will soon become the first to charge customers for UPI transactions. From May 1, its customers will be able to make 30 free peer-to-peer transfers each month using UPI. The bank will charge Rs 2.50 per transaction for additional transfers of Rs 1,000 or less, and Rs 5 plus 18% GST for transfers of more than Rs 1,000.

The number of transactions through UPI grew 18.6% between February and March, according to data published by NPCI. The total amount transacted increased by Rs 26,723.6 crore over that period.

Advertisement. Scroll to continue reading.
Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



The Delhi High Court should quash the government's order to block Tanul Thakur's website in light of the Shreya Singhal verdict by the Supreme...


Releasing the policy is akin to putting the proverbial 'cart before the horse'.


The industry's growth is being weighed down by taxation and legal uncertainty.


Due to the scale of regulatory and technical challenges, transparency reporting under the IT Rules has gotten off to a rocky start.


Here are possible reasons why Indians are not generating significant IAP revenues despite our download share crossing 30%.

You May Also Like


Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...


135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...


Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...


By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ