Fake: UPI transactions are not chargeable from January 1 2021

New Delhi, Jan 01: News about UPI transactions being chargeable from January 1 2020 is fake.

The National Payments Corporation of India (NPCI) said that the information is incorrect and requested all not to fall prey to such incorrect information. NPCI would like to clarify that the news about UPI transactions being charged from 1st Jan, 21 is completely Fake. Our press release dated Nov 5 2020, has no correlation with pricing or charges whatsoever, the NPCI said.

In November, the NPCI said that with UPI reaching 2 Bn transactions a month and with potential for future growth, it has issued a cap of 30% of total volume of transactions processed in UPI, applicable on all Third Party App Providers (TPAPs). This will be with effect from January 1, 2021. It will help to address the risks and protect the UPI ecosystem as it further scales up.

The cap of 30% will be calculated basis the total volume of transactions processed in UPI during the preceding three months (on a rolling basis).

The existing TPAPs exceeding the specified cap, will have a period of two years from January 2021, to comply with the same in a phased manner.

National Payments Corporation of India (NPCI) was incorporated in 2008 as an umbrella organization for operating retail payments and settlement systems in India. NPCI has created a robust payment and settlement infrastructure in the country. It has changed the way payments are made in India through a bouquet of retail payment products such as RuPay card, Immediate Payment Service (IMPS), Unified Payments Interface (UPI), Bharat Interface for Money (BHIM), BHIM Aadhaar, National Electronic Toll Collection (NETC Fastag) and Bharat BillPay. NPCI also launched UPI 2.0 to offer a more secure and comprehensive services to consumers and merchants.