It’s obvious that there are charges being levied on
transactions by NPCI for all UPI transactions, but the charges are miserably
lower than the existing debit/credit card transactions at merchant outlets. An
innocent merchant has to bear the charges of the per card transactions levied (e.g.
MDR) and not the scheme or the network (e.g. VISA, MasterCard, etc.).
Here you go with the charge grid by NPCI for UPI
transactions. Few basic terminologies as mentioned below are:
Ø
Remitter Bank à
The Bank account of the customer from which the money is transferred.
Ø
Beneficiary Bank à
The Bank account of the customer in which the money is received.
Ø
Payer à
The customer who sends the money.
Ø
Payee à
The customer who receives the money.
Ø
Payer PSP à
The PSP application facilitating the UPI transaction from which the money is
sent.
Ø
Payee PSP à
The PSP application facilitating the UPI transaction in which the money is
received sent by the Payer.
Ø
Switching Fee à
Similar to every Bank’s own switch, NPCI has also its own UPI switch, which
transmits the transaction message. Hence, NPCI charges a nominal fee for each
UPI transaction.
Ø
Interchange Fee à
The bonus fee received by the acceptor (Payee PSP ) by the Remitter Bank for
transactions received.
Type of charge
|
By whom to who?
|
Charge amount
|
Interchange fee
|
Remitter Bank to Payee PSP
|
0.5% per transaction with a limit of INR 5
|
Switching fee
|
Remitter Bank to NPCI
|
Txn upto INR 1K à
INR 0.10
Txn more than INR 1K à
INR 0.50
|
PSP fee
|
Remitter Bank to Payer PSP
|
Txn upto INR 1K à
INR 0.25
Txn more than INR 1K à
INR 0.50
|
Customer convenience fee
|
Remitter bank to customer
|
1% per transaction with a limit of INR 10
|
Hope you are enlightened with the note. Let know for any
related clarifications/doubts.