The National Payments Corporation of India (NPCI) on March 29, 2023, issued a notification regarding UPI being free, fast, secure, and seamless
In recent times, UPI has emerged as a preferred mode of digital payments by offering a free, fast, secure, and seamless experience. Traditionally, the most preferred method of UPI transactions is linking the Bank account in any UPI-enabled app for making payments which contribute over 99.9% of total UPI transactions. These Bank account-to-account transactions continue to remain free for Customers and Merchants.
In recent regulatory guidelines, the Prepaid Payment Instruments (PPI Wallets) have been permitted to be part of an interoperable UPI ecosystem, because of this NPCI has now permitted the PPI wallets to be part of an interoperable UPI ecosystem. The interchange charges introduced are only applicable for the PPI merchant transactions and there is no charge to customers, and it is further clarified that there are no charges for the bank account to bank account-based UPI payments (i.e. normal UPI payments).
With this addition to UPI, the Customers will have the choice of using any bank account, RuPay Credit card, and prepaid wallet on UPI-enabled apps.
