The 1.1% UPI Charge

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I have been saying for a long time that sooner or later the government of India will indeed charge a fee from the UPI system which stands for Unified Payments Interface but there was hardly any person that was willing to understand the things I was saying. Low and Behold we now have some new charges added to the UPI system and now people are starting to panic a little as most of them are thinking that they might have to pay 1.1 percent charges on all their transactions on UPI but I am here to say that is not the case and there are some things that people misunderstood.

For starters, the 1.1 percent charge on UPI transactions is not for individuals it will be charged at the Merchant's end and not the users, and even then there are a set of rules that need to be followed and only then a transaction fee will be levied upon the merchants. So the MErchants will be charged the transaction fees only if the transactions occur between a bank and a payment wallet or if a user pays via a Credit Card on the UPI platform. Yes, I know that it doesn't sound fair especially since we have been using it for free for so long, but you should consider the fact that 1.1 percent is quite lower than what the Banks used to charge from the MErchants for Credit Card Transactions.

In my opinion, this was kind of inevitable but I also feel like there will be a smooth transition to this feature sooner than later.