Thread by @stockgro

1/ #JustIn🚨: #UPI transactions not free anymore? 😯

Here’s what you need to know before going haywire on #UPIpayment ⤵️

2/ @NPCI_NPCI recently announced a new proposal.

According to the mandate - An intercharge fee of 1.1% will be charged on #UPIpayment exceeding Rs 2,000.

This proposal will come into force starting April 01, 2023.

3/ But the important question is - will you, as a consumer, be charged this 1.1% amount? 🤔

The answer is 'no!'🙅‍♂️

4/ So, imagine you carry out a transaction worth more than Rs.2000 via @Paytm, @GooglePay, #PhonePe, etc.

The merchant who finally receives this amount in their online wallet will have to pay the fee.

It will be deducted from the amount itself. 💸

5/ To make things simpler, NPCI has also made some clarifications -

✅Charges will be levied on #UPIpayment done using prepaid payment instruments (PPIs) like cards or online wallet

6/ ✅1.1% charge will be levied on small, medium, and large merchants.

✅In exceptional cases, a lower intercharge of 0.5% would be levied

7/ Additionally, zero charges will be levied on-
✅Person-2-person (P2P) transactions

✅Person-2-small business (having net value of #UPIpayments less than Rs.50,000) or P2PM transactions

8/ Did this move by NPCI come as a shocker? 🤔