NPCI recommends PPI/Wallet companies charges for merchant transactions via UPI
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NPCI recommends PPI/Wallet companies charges for merchant transactions via UPI:
Before start let me tell you, MDR is paid by the merchant, not customer. Customers need not worry about MDR charges.
Prepaid Payment Instrument (PPI) charges for merchant transactions carried through the Unified Payments Interface (UPI) are in place. A recent circular from the National Payments Corporation of India (NPCI) suggests that the are following charges will be applicable on merchant transactions from April 1.
Using PPIs on UPI from will attract interchange at 1.1 percent on transaction value for amounts over Rs 2,000. For industry programme merchant category codes, the interchange is as follows:
The PPI issuer will pay about 15 basis point as a wallet-loading service charge to the remitter bank and an interchange is not applicable in terms of peer-topeer (P2P) and peer-to-peer-merchant (P2PM) transactions between bank account and PPI wallet.
Broking firm Equirus says that as per existing guidelines on debit cards, the Merchant Discount Rate (MDR) charges range from 0.3 to 0.8 percent. So, this could be the first step; we may incrementally see interchanges being announced on other modes of payments as well. Equirus says around 65-70 percent of UPI P2PM transactions are of a value of more than Rs 2,000. And so, with introduction of an interchange of about 0.5 to about 1.1 percent,
Equirus believes that there is adequate possibility for various stakeholders in the system. So this should be seen positively for credit card companies as the risk of any cap on MDR actually reduces, it says.
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Telecom, utilities and Mutual funds expected to absorb the charges. Rest would definitely pass on to the customer.
It had to happen.. UPI was free to increase adoption. it cant be free forever..
What happens to p2p upi transfers? What if I send someone 10k?
So basically these are the charges if you use your wallet amount for UPI transactions??
Previously wallet to UPI is not allowed right and also wallet loading is charged for CC..
Now does it applicable for wallet loading using UPI also?
Today only confirmed that UPI is free. Is this correct info? @abhishek021
Yes, Bank account link UPI is 100% Free.
Bank account link means saving account/salary account/pension account/current account link UPI payment is 100% Free.
Already mentioned in my post this MDR charges will implement on PPI Wallet balance link UPI payment and that too if transaction is above Rs2000.
If we pay our Amazon wallet balance link UPI to any merchant Rs2001 then MDR charges will apply and this MDR fee will paid by merchant.
Also note Wallet UPI to bank transfer is also Free and Bank account link UPI to Wallet alod also Free.
Bajaj wallet already started implementing it
Wallet Loading charges : 2%
Wallet to Bank transfer : 1% (Send to Bank)
All Wallet to bank transfers above 2k failing 
This month no Send to bank offers also
If something falls on merchant head and if merchant can't bear it then customer will suffer atlast 
Bajaj wallet to bank transfer via UPI also Free.
Paying credit card bill through UPI also chargeable 
?
No, Charges paid by merchants. 100% Free for customers.
Credit card bill payment websites/apps already paid approx 1% MDR through net banking/debit cards payment.
When you paid credit card bills via net banking and debit cards. Net banking and debit card also also charges upto 0.9%+GST. This MDR charges paid by merchant.
dear oh dear, leeching the middle class when ambani-adani hoarding 100% $$$$$$$$$$
Bank account link UPI is 100% Free (Saving/Salary/Pension/Current account link UPI is Free).
This is only for Wallet balance link UPI payment for merchants and that too transaction above Rs2000.
Wallet balance link UPI to bank transfer also Free.
last thing MDR is paid by merchants. Merchants already paid debit card/net banking/credit card MDR.
So it is better to do Net Banking whenever possible as UPI Charge may shift to customer sooner or later when there is no way back that much we are used to it.
Do you know Net banking also charge 0.5% to 2% (depend on merchant categories) ? this money is paid by Merchants.
Similarly, UPI MDR will also paid by merchant.
According to your statement, why you paid 0.5% to 2% on net banking transaction ? tell me ? because now you will understand this money is paid by merchant.
UPI MDR will never shift to customers.
Clearly mentioned this is only for PPI/Wallet companies UPI payment not bank account link UPI.
People missing the point even in a post which explicitly States wallets.
Meanwhile some dimers were sharing gyaan about UPI being alternative to charges on cc/dc. 
sneakiest way to Rip off the Middle and Lower classes, jesus christ
Middle and Lower classes dnt use wallet balance link UPI for merchant payment.
Middle and Lower classes people directly use Bank account link UPI, which is 100% Free.
2nd thing, this charges will paid by merchants. If you are a customer then you dnt have to worry about anything.
3rd thing, no charges for small merchants upto 2k per transaction.
Stop preaching that it is free for customers. Even you know & I know that many merchants/shops ask for extra 2% when we want to pay by card. It was predominant earlier, it has come down in recent times because shop keepers understand that they need to absorb that 2% charge + offers from providers, but it still exists in many businesses. They used to be happy to accept by UPI over card, but now they would force you to cough up the extra costs incurred for them or pay by cash.
Unless UPI is kept free, that dream of going majorly cashless is silly!!
This is only for Wallet balance link UPI payment on merchant and transaction under Rs2000 still free for Wallet balance link UPI payment.
so does this means loading money via UPI into stock apps like Zerodha, Upstox, Groww will incur charges?
2nd thing, MDR will paid by merchant not customers. Groww already tweeted, we merchant will pay this MDR charges not customers.
Zerodha, Upstox, Groww etc already paid MDR when we use net banking/ imps/neft etc to load money. Now they will also pay Wallet-linked UPI payment acceptance.
Most of the people commenting here grossly misunderstood the Wallet-linked UPI with normal Bank-linked UPI. Hence, they are blurting out wrongly, without any iota of knowledge about it.
The post is about MDR on Wallet-linked UPI.There is no MDR on Bank-linked UPI.
Can you explain this to a normal users like me?
Who will pay to whom how much?
I see there are 5 parties involved here.
1. Banks
2. Wallets (Paytm, Mobikwik)
3. Merchants
4. Customer
5. RBI/Govt.