The National Payments Corporation of India (NPCI) has suggested that additional fees will be levied on Prepaid Payment Instrument (PPI) on merchant transactions via UPI methods. There are few PPIs available in India including PhonePe, Paytm, and Google Pay.

The concerned body has recommended a fee of up to 1.1% which will be levied on transactions above Rs 2,000 on UPI. It will generate high costs connected with UPI transactions.

Moreover, the NPCI has confirmed that there will be zero charges for normal UPI payments and bank to bank transactions on UPI payments.

However, the implementation will not affect individual users making personal transactions using UPI. The additional fee will only be applicable to people who accepts money via PPIs.

The customers will have a choice of using any bank account, RuPat Credit card and prepaid wallets on UPI-enabled application.