The National Payments Corporation of India has slashed usage fees for small transactions through Unified Payments Interface to expand the system’s adoption among banks and payment service providers (PSPs), ET reported. NPCI chief executive officer Dilip Asbe said the move was aimed to promote UPI.
For UPI transactions up to Rs 1,000, the charge has been cut to 10 paise from 25 paise, NPCI said in a note to banks and PSPs. The charge for transactions above Rs 1,000 has been retained at 50 paise, said the ET report.
“The move from NPCI will not only help service providers like banks and third-party applications to aggressively push UPI, it will also help consumers in the long run as more cashbacks and incentives can get offered,” a top executive at one of the largest payment service provithe country told ET.
Google Pay, Paytm and PhonePe are aggressively promoting UPI to get ahead in the payments race.