Why in News?

• National Payments Corporation of India (NPCI) has recently clarified that there are no charges for bank account – to – bank account based UPI payments.

Highlights

• NPCI stated that an interchange charge of 1.1% has been introduced on UPI transactions made through PPI instruments above Rs 2,000, and there is no charge to customers.
• Also, NPCI has permitted the PPI wallets to be part of interoperable UPI ecosystem.
• The RBI defines PPIs as payment instruments that facilitate the buying of goods and services, including the transfer of funds, financial services, and remittances, against the value stored within or on the instrument.
• PPIs are in the form of payment wallets (like Paytm Wallet, Amazon Pay Wallet, PhonePe Wallet, etc.), smart cards, mobile wallets, magnetic chips, vouchers, etc. As per the regulations, banks and NBFCs can issue PPIs.
• NPCI is an umbrella organisation for all retail payments systems in India. Its primary objective is to provide safe, secure, and efficient retail payment systems in India.
• It aims to promote digital payments and financial inclusion in the country