New UPI Rules Starting From April 1

What’s the news?

NPCI(National Payment Corporation of India) has released a news about a new payment system for the UPI users. But not to be a panic situation for a customer side but it could be a panic situation for the merchant side. The corporation has said that the merchant will be charged 1.1% for any payment of Rs. 2000 or above.

Merchants conducting wallet transactions via UPI will be charged a 1.1 percent interchange fee on P2M transactions above Rs 2,000, while customers will not be charged. It is important to note that bank-to-bank account transactions on UPI will remain entirely free.

What advantages does using a prepaid wallet have over making direct payments from your bank account through the UPI QR code? One significant benefit is that our daily lives involve many small transactions, which can clutter our bank statements.

With a prepaid wallet, you can enjoy the convenience of keeping all your routine transactions in one place, preventing your savings account from getting overwhelmed.

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It is noteworthy that a wallet can be funded through various payment modes, including credit cards or bank accounts through UPI. This offers the convenience of utilizing a credit card (with applicable fees) as an alternative to relying solely on a bank account in the event of a shortage of funds while making purchases at a merchant outlet.

UPI the lifeline of modern digital India

On April 11, 2016, the esteemed Governor of RBI, Dr. Raghuram G. Rajan, initiated the pilot program in Mumbai. Subsequently, beginning from August 25, 2016, banks commenced depositing their UPI-enabled applications on the Google Play store. Presently, in May 2021, the platform boasts a user base of over 100 million active users monthly in India.

<figcaption class="pl-caption>Credit: Google

UPI was launched even before the launch of the 4G. Only millennials and some upper class educated peoples were using it not knowing the future of it, benefits, or risks.

Slowly and steadily when smartphone market expanded internet becomes cheaper and landing of different players in this market just created a base of trust and security within the country’s people. Even frauds doesn’t missed these market but still milliona of people are still using it.

Now they know everything about UPI and now these are not limited to specific sets of people, it can be used by anyone and one even does not need a smartphone to make a transaction using UPI.

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