Don’t be Fool About 1.1% Charge on UPI Payment Over ₹2000 Transaction

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Don't be Fool About 1.1% Charge on UPI Payment Over ₹2000 Transaction

UPI payments are almost magical, right? You don’t need to carry cash, and you can survive anywhere with just your phone. However, you may have heard that beginning in 2023, there will be a 1.1% charge on transactions exceeding 2,000 rupees for UPI payments. And you’re both surprised and concerned. Then this Technical Dost article “Don’t Be Fooled About 1.1% Charge on UPI Payment Over ₹2000 Transaction” is for you.

The technical department would like to reassure you that you should not be concerned about this news. According to the NPCI circular on P2P (person-to-person) and P2M (person-to-merchant), there are no additional charges. It means you won’t have to pay the extra fee if you need to pay a friend, family member, or any other person or store.

When will you be charged? The answer to this question is “never.” You have nothing to do with the 1.1% charge. This circular is only applicable to merchants, banks, and PPI (Pyatm, GooglePay, PhonePe, and so on), and it does not apply to consumers.

For instance, suppose you spent 2,500 at Gupta Ji’s shop. Do you have to pay an extra 1.1% charge now that the amount exceeds 2,000 rupees? No, extra charges will be borne by Gupta Ji, the merchant whose scanner Gupta Ji has used, or the bank with which they are affiliated. So you have nothing to do with it.

You can pay your friend 3,000, 5,000, or any amount, pay any bill, or recharge your phone; there will be no additional charges. If you pay Gupta Ji with your Paytm wallet, the charge will be borne by him. It is now up to Gupta ji to collect the extra charge from the bank or their merchant.

If you do not want your merchant to pay the additional fee, you can simply pay him via bank transfer rather than a wallet. However, what mode you are willing to pay for is entirely up to you. You have nothing to do with the 1.1% Charge on UPI Payment Over ₹2000 Transaction.


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