No need to Panic
UPI Payments will remain free, nothing changes for you, there won’t be any charge on UPI Bank Transfers
The new proposal is only applicable for Wallets/PPI
Where UPI transactions made via Prepaid Payments Instruments (Such as Wallets, Credit Cards) will have an Interchange Fees
It will carry an Interchange Fee of 1.1% for payments made to merchants, that too only on transactions above ₹2,000 made to online & offline merchants
Again, Users don’t need to pay anything, just the same way you use your Debit and Credit Card
You may also refer to the Official Circular by NPCI
As explained earlier, the Interchange is only applicable when you make payments via Wallets (Paytm, PhonePe) that too is not charged to you
Clearly says, Unified Payments Interface (UPI) using Prepaid Payment Instruments (PPI) will be subjected to charges
1.1% on the transaction amount for amounts over ₹2,000
Now How Wallets will work with UPI?
You may have missed this but NPCI recently introduced Wallet Interoperability with UPI
That means your Paytm, Amazon Pay or PhonePe etc Wallet Balance (Not Bank Account) can be used to pay on UPI
Two Facts 💡
a) Majority of UPI Transactions are less than ₹2000, so no Interchange at all
b) Most people use UPI with Bank Accounts only.