New fee on some UPI payments doesn’t address industry’s main challenges3 min read 30 Mar 2023, 11:19 AM IST
Rather than impose a 1.1% charge on UPI transactions above ₹2,000 made from prepaid payment instruments such as wallets, the NPCI should compensate intermediaries for all UPI payments using funds from the government, RBI and commercial banks
The interchange fee proposed by the National Payment Corporation of India on digital payments from prepaid paying instruments using the Unified Payment Interface (UPI) is irrational and does not address the real challenge that payment operators face. Every UPI payment – big or small – costs money and should be paid for, ideally by the government, the Reserve Bank of India and the banks involved.
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