Starting April 1, service provider transactions exceeding ₹2,000 in worth performed utilizing Prepaid Payment Instruments (PPI Wallets) on UPI will entice an interchange cost of 1.1%. However, “the new interchange charges are only applicable for the PPI merchant transactions and there is no charge to customers,” the National Payments Corporation of India (NPCI), which governs UPI,, mentioned in an announcement on Wednesday. 

“It is further clarified that there are no charges for the bank account to bank account based UPI payments (i.e. normal UPI payments),” the NPCI added.

The Interchange price is mostly related to card funds to cowl transaction price.

In the assertion, NCPI mentioned as per current regulatory tips, the PPI Wallets had been permitted to be a part of the interoperable UPI ecosystem.

Rajsri Rengan, India Head of Development, Banking and Payments, at FIS mentioned in an announcement, ”The new interoperability tips for pay as you go fee devices introduced by the NPCI is a major step in direction of constructing a extra inclusive and seamless digital funds ecosystem in India.”

“The interoperability of digital wallets and UPI can be a game-changer for the Indian fintech industry, as it opens up new opportunities for innovation, growth, and competition. With greater interoperability between payment systems, consumers will have more choice and flexibility in how they transact with merchants, leading to increased adoption of digital payments and ultimately driving financial inclusion and economic growth,” Ms. Rengan mentioned. 

“This move will also encourage innovation in the digital payments space, fostering competition and improving the quality of services offered to consumers,” she added.

“We believe this is a positive development for the Indian economy and the banking system as a whole, and we look forward to continuing to support the growth and development of digital payments in India,” Ms. Rengan noticed.