NPCI warns UPI Member Banks on Levy of Surcharge by merchants and channel partners in UPI

          Oxford dictionary defines ‘Levy’, as “Impose a tax, fee, or fine on”

          The share of UPI transactions in the overall digital transactions is on the increase. The UPI transactions are a mix of new digital transactions and migrated transactions.

          Migrated transactions refer to those transactions which would have been otherwise done through digital transactions channel i.e Net Banking, Debit Cards.

          These could have affected the income of the respective participants.

          The UPI – Collect Mode is becoming the preferred payment mode across India and Bharat. The UPI-Collect mode ensures that the payment is going to intended beneficiary only and no payment is made to a wrong party.

                    NPCI vide its circular OC 68 dt.May 16, 2019 addressed to all member banks(PSPs and third party applications) in UPI platform has advised that ‘No surcharge to be levied to customers for UPI transactions’.

          NPCI issued this clarification after it was brought to its notice that some banks / bank partners / merchants are passing surcharge to customers opting for UPI payment mode.

          NPCI also clarified that:

a)     UPI must be treated at par with any other debit payment modes such as Debit Card, Net Banking, NEFT at all times.

b)    The ‘convenience fees’, if any must be mentioned upfront to the customer prior to selection of ‘Payment Mode’.

c)     This ‘convenience fees’ must be consistent for available debit payment modes i.e Net banking, debit cards, UPI etc.

         

Disclaimer: These are my personal views only. The bottom line is SAFE ePayments – Nothing more, Nothing less.