Get the recent update on UPI Transaction Charges 2023 Direct Payment, and Wallet charges
On a regular basis, a middle-class person is unable to manage expenses for himself and his family. What if they will be required to pay extra? Will they be able to give the UPI Transaction Charges or not?
UPI Transaction Charges 2023
There is a piece of interesting and important news to cover regarding UPI Transactions. Any user who will make a UPI Transaction will have to give 1.1% charge to the merchant. This will be effective from 1st April 2023.
Don’t worry the transaction will be effective only for those users who will make transactions above Rs 2000. Got some relief? You might be wondering that I regularly do transactions from my PayTM, GPay, PhonePe etc, in this way I am going to lose too much! This is not the case with you it is for the big transactions only.
The Notification for UPI Transaction Charges 2023 has been released by NPCI, National Payments Corporation of India in the last week of March 2023.
What is a UPI Transaction?
National Payments Corporation of India has created a programme of real-time online payment to a merchant, friend or anyone else via the UPI ID. Unified Payments Interface service works when an individual opens the scanner to scan the QR code or he/she make a transaction on an UPI ID. They have to enter an amount and the security PIN to make a transaction. The amount is later debited and credited to the acoount of the respective users, this is how a UPI Transaction works.
UPI Facilities are available for:
- P2P: This is known as Peer to Peer transaction
- P2M: Person to Merchant
- P2PM: For small merchants and retailers.
Since fewer years after demonetization, people have reduced the usage of cash payments and have increased UPI transfers only. In one way, UPI is helpful as touching hands is prevented (considering COVID-19 or other infections), people can manage their money online, and people who do fraud with economically weaker people are also finished. But there are malicious activities that were reported such as fake transactions, entering the UPI ID of another person to get money etc. Despite of the negative aspects, people, merchants, retailers and almost everyone is using UPI Transaction. They must be aware of the UPI Transaction Charges, fake activities and fraud.
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Direct Payment
The Government is trying to make improvements and developments for the citizens. Be it a business, merchant or any other UPI owner. They will now be getting profit per UPI Transaction. Many of you might be having doubts on what will happen when I will transact money to my family or friends. In this case, no amount will be deducted because you are not sending money to the merchant but to another UPI.
This fact is quite understandable for the merchants but what about the local people? How will they be going to manage the regular expenses? What if they do a direct payment instead of UPI?
Wallet Charges
If your amount to a UPI merchant is less than Rs 2000 then no amount will be deducted. Else, you will have to pay around 1.1%. The Wallet charges scenario totally depends on the Merchant whether they want to impose a fee on the user or not. In simple words, the transaction between a bank to a bank account will not be charged any significant amount. It is only for Merchant and UPI transactions. Do not get confused with them.
Users of Paytm wallet, PhonePe wallet, Amazon Pay, MobiKwik wallet, and SODEXO vouchers must stay alert for the consequences. It usually happens that you ignore the extra charges and pay the amount directly via the scan and pay system.
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