UPI Transactions Over Rs 2,000 To Carry 1.1% Charge From 1 April

NEW DELHI: In a recent circular, the National Payments Corporation of India (NPCI) suggested imposing an interchange fee on transactions using the Unified Payments Interface (UPI) starting on April 1. 

The NPCI, the organisation that oversees UPI, announced in a circular that combining PPIs with UPIs will result in interchange at 1.1% of the transaction value for amounts greater than Rs 2,000. 

The interchange fee is typically incurred when using a credit or debit card to make a purchase. It pays for the expenses associated with accepting, processing, and authorising transactions.  For P2P and P2PM transfers between a bank account and a PPI wallet, the PPI issuer will pay the remitter bank about 15 basis points as a wallet-loading service fee. 

0.5% of exchange is made up of fuel, 0.7% is made up of telecom, utilities, post offices, education, and agriculture, 0.9% is made up of supermarkets, and 1% is made up of mutual funds, the government, insurance, and railroads. The new valuation will take effect on April 1, 2023. A review of the state pricing will be conducted by the NPCI by September 30, 2023, according to the circular.

Due to a significant increase in the wholesale price index, the costs of 384 critical medications and more than 1,000 formulations are expected to increase by more than 11%. (WPI). Consumers will have to pay extra for common and necessary medications, such as painkillers, antibiotics, and anti-infection medications, starting on April 1 due to the price increase. 

The National List of Essential Medicines' (NLEM) annual price increases are based on the WPI. The National Pharmaceutical Pricing Authority stated in a message dated March 25 that the yearly adjustment in WPI for the calendar year 2022 was 12.12%. Last year, the wholesale price index changed by 10.7%, according to the National Pharmaceutical Pricing Authority (NPPA) (WPI).

Also Read: Prices Of Essential Medicines Set To Increase From April 1

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