CURRENT AFFAIRS

Detailed explanation-1: -The report said NPCI has reduced: charges on transactions up to Rs 1,000 from 25 paise to 10 paise while keeping the charge for transactions above Rs 1,000 unchanged at 50 paise. incentive payments to a flat 10 paise per transaction. Earlier, these were charged at the same rate as normal transactions.

Detailed explanation-2: -Instead of the 25 paise charge on transactions up to Rs. 1000 and 50 paise charge on exceeding Rs. 1000, NPCI (National Payments Corporation of India) has brought it down to a flat rate of 10 paise for all transactions (along with an ad valoreum charge of 0.04% divided between the issuing bank and the acquiring bank).

Detailed explanation-3: -Cost to the market and the Government subsidies According to RBI’s Discussion Paper, the collective cost borne by all stakeholders for a Peer to Merchant (P2M) UPI transaction ticket-valued at Rs 800 is roughly Rs. 2 i.e.,  0.25% of transaction value.

Detailed explanation-4: -But there is one question: are there any charges for doing a UPI payment.? Currently in India UPI payments are free of cost. There is no extra charge for doing a UPI payment. You can transfer one rupee also and you can thousand Rs also.