What’s in NPCI’s wallet? A plan to unclog banking channels
NPCI) is considering a lower, uniform interchange fee to encourage mobile wallet companies to step up their Unified Payments Interface (UPI) business, said people with knowledge of the matter. This comes as banks seek to reduce the stress of millions of small-value digital payments on their systems. Bank transactions via UPI are free of cost because of a government mandate.
Budget with ET
India looks to bring more women into workforce
A game changing budget to revive India’s backbone — agriculture
How would you plan India's Budget? Give it a try
The NPCI and the mobile wallet industry are looking to settle on an interchange fee of 0.6% to 0.7% for all transactions, according to two bankers. Currently, 1.1% is levied on the value of any interoperable wallet-based transaction that takes place through the UPI system of Rs 2,000 and above. Wallet-based payments below this don’t attract a levy.
A uniform rate will encourage prepaid payment instrument (PPI) or mobile wallet issuers such as MobiKwik, Amazon Pay, Slice and Omnicard to push for interoperable QR code-based UPI payments by their customers.
Emailed queries sent to NPCI remained unanswered at the time of going to press.
“The hope is that once there is a revenue-generating opportunity, more wallet companies will incentivise their customers to undertake UPI payments via their wallets, instead of using their bank accounts directly,” said one of the bankers. “This will help unclog the banking system.”
Artificial Intelligence(AI)
Java Programming with ChatGPT:
