RBI Imposes Interchange Fee on UPI Payments Made via Prepaid Instruments

 The Reserve Bank of India (RBI) has recently announced that payments made through prepaid instruments such as mobile wallets, prepaid cards, and digital vouchers to merchants via the Unified Payments Interface (UPI) will now attract an interchange fee. This move by the RBI is aimed at creating a level playing field for all players in the UPI ecosystem and ensuring that prepaid instrument issuers are adequately compensated for the services they provide.


Previously, UPI payments made through prepaid instruments were exempted from interchange fees. However, the RBI has now decided to impose an interchange fee to bring parity between UPI transactions made through prepaid instruments and other UPI transactions. The interchange fee for UPI transactions made through prepaid instruments will be 0.5% of the transaction value subject to a maximum of Rs. 5 per transaction.


Interchange fee refers to the amount that is paid by the merchant's bank to the issuer of the prepaid instrument for processing the transaction. This fee is usually a percentage of the transaction value and is a source of revenue for the issuer of the prepaid instrument. This move is expected to generate more revenue for the issuers of prepaid instruments and encourage them to promote the usage of their instruments for UPI transactions.


The usage of UPI payments has seen a tremendous increase in recent times with the government's push towards digital payments and the pandemic-induced shift towards contactless transactions. The move by the RBI to impose an interchange fee on UPI transactions made through prepaid instruments is expected to create a more competitive and balanced ecosystem for all players involved in the UPI payment process.


In conclusion, this move by the RBI is a step towards ensuring a level playing field for all players in the UPI ecosystem and providing adequate compensation to prepaid instrument issuers for their services. It is expected to generate more revenue for prepaid instrument issuers and encourage the promotion of their instruments for UPI transactions. The move is likely to benefit the overall digital payment ecosystem in India.

Comments

Post a Comment

Popular posts from this blog

How to Download All Your Media From Google Photos

Image
Cloud storage has changed the way we take care of our data. In the past, you needed to backup and transfer files between devices directly, or else you wouldn't have them in multiple locations. If you took photos on your iPhone or Android, for example, you'd often want to plug it into your computer to make sure those photos were both backed up and easily accessible for sharing with friends, family, and the internet at large. The problem is, we've changed the way we deal with data these days. If you plug your smartphone into your computer expecting to transfer all the photos and videos you see in your photos app of choice, you might be surprised to find that only a fraction of the images actually make their way to your PC. It's confusing, considering that media is accessible on the phone: Why can it just be a seamless transfer? Google Photos makes it confusing to know which images are stored on-device That's exactly what happened with Reddit user Spax123 , who took...
Read more

The Best U.S. Cities for Tech Jobs (Aside From the Obvious)

Image
Working in tech no longer means having to live in one of a handful of increasingly unaffordable cities, like New York City, Seattle, Chicago, and San Francisco. Instead, as jobs involving artificial intelligence and product security, among other areas, continue to grow, cities that weren't previously considered tech hubs now offer opportunities for both tech-related employment and affordable living. Here are a few examples, compiled using data from job market reports and cities, as well as input from tech recruiters and hiring managers. Bentonville, Arkansas Perhaps best known for being Walmart's home city, Bentonville has been on the rise as a tech center for the last seven or eight years, according to Eóin O'Toole, a tech recruiter and managing partner at Riviera Partners . In addition to the big-box store giant, O'Toole says that there's a "surging ecosystem both directly and indirectly related to Walmart," as well as other major employers, like JB H...
Read more

Are 8K TVs Worth It in 2024?

Image
Buying a television is an overwhelming experience: the sheer number of models combined with the various ways companies describe similar technologies ( OLED versus QLED , microLED versus miniLED) is enough to make your head spin. One of the most important decisions you'll likely make regarding a television is the image quality. Right now, that means choosing between 4K and 8K. So, is it worth it to get an 8K television in 2024? For some people, yes—but it's not for everyone just yet. When you can get it, 8K content is truly stunning When I first set up an 8K TV in my home (a 65-inch model loaned to me by Samsung for a review coming later this week), I spent a solid week acting like a 5-year-old at Disneyland; I was absolutely awestruck by the detail and dimension of that many pixels shoved into such a small space. ( It's about 33 million pixels , by the way, compared to the roughly 8.3 million pixels on 4K TVs .) Once the initial excitement wore off, I was desperate to s...
Read more