NPCI likely to ask banks not to charge for UPI payments: Report

“NPCI will be requesting banks not to charge customers for peer-to-peer UPI transactions at this stage,” a senior banker said.

As HDFC Bank plans to start charging its customers for transactions made through the Unified Payments Interface (UPI) from July 10, the National Payments Corporation of India (NPCI) is mulling over asking banks not to charge for such payments to promote digital modes of payment.

NPCI is the umbrella organisation for all retail payment systems in India. It aims to allow all Indian citizens to have unrestricted access to e-payment services.

“NPCI will be requesting banks not to charge customers for peer-to-peer UPI transactions at this stage,” ET quoted a senior banker as saying. “They want to work out a strategy so that at least low-value, peer-to-peer (P2P) payments are not charged.”

“So far, no bank is charging for UPI transactions but at the same time it is at their discretion to levy a reasonable fee towards person-to-person (P2P) transactions for UPI and IMPS (Immediate Payment Service). However, person-to-merchant (P2M) transactions in UPI will remain free to customers as per NPCI guidelines,” NPCI chief operating officer Dilip Asbe was quoted as saying.

 
Source: ET

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