Starting from April 1, the National Payments Corporation of India (NPCI) is allowing the integration of digital wallets with UPI, which previously was not possible.
However, this integration will come with extra costs for merchant outlets if the transaction amount exceeds a certain limit.
It's important to note that UPI account-to-account transactions will not cost anything extra.
The newest change is that users can now pay directly from wallets to UPI, but any payment over Rs 2,000 at a merchant outlet will be chargeable.
The fee will be levied on the merchant end, and it is up to the seller whether or not to pass on the fee to the customer.
This change comes after NPCI allowed credit cards to be linked with UPI, and the interchangeable fee is usually paid by the bank of the receiver to the bank of the payer.
The fee will be reviewed again by September 30, 2023. However, it's important to note that UPI or wallet payments to friends and family for any amount will remain free.