For small value transactions, the NPCI which operates the UPI framework has slashed usage fees such that its adoption increases among payment service providers (PSPs) and banks.
Transactions that value up to Rs. 1000 will attract 10 paise as against earlier 25 paise, while for those valued higher of Rs. 1000, the charges gave been retained at 50 paise.
The move is aimed at increasing the popularity of the UPI platform.
NPCI also charges incentive payments at the same rate as normal transactions are also brought under the ambit of 10 paise for promotions by PSPs and banks. Incentive payments are the charges PSPs and banks pay NPCI at the time of crediting cashbacks in the customer's bank account.
Also, a cut has been made in respect of merchant transactions meted out via UPI. , NPCI has introduced a flat charge of 10 paise along with an ad-valorem levy of 0.04% split between the acquiring bank and the issuing bank, said the note that the retail payments body sent to service providers.