UPI Payment charge Detail on Railway Reservation-Electricity Bill and Petrol Pump Bill: The government has made a big change in the rules of transaction through UPI. MDR has been kept at zero on transactions less than ₹2000. Whereas payments above ₹2000 through UPI will be charged 0.4%. The maximum limit of fees has been made up to Rs 300. This has created confusion regarding digital payments amid the new rules of UPI Merchant Discount Rate (MDR) coming into effect from October 15. However, if we look at the circular issued by the National Payment Corporation of India (NPCI) on Tuesday, the same MDR will not be applicable to everyone. The government has divided it into various categories and has given relief accordingly. Of these, five UPI payment categories have been kept under the flat-rate model (UPI MDR Flat Rate Model), that is, no matter the amount of payment, the same charge will be applicable.
Crores of people of the country pay railway reservation, electricity bill and after taking petrol at petrol pump, they pay the bill through UPI payment. Due to this, people fear that how much charge will have to be paid on bills of more than ₹ 2000. According to the guidelines of National Payment Corporation of India (NPCI), a flat fee of Rs 5 will have to be paid for making payment through UPI on railway reservation, electricity bill and petrol pump. Let us understand this rule in detail:-
Just Rs 5 on Rs 2001 or more
Talking about UPI Payment MDR Flat-Rate Model (UPI MDR Flat Rate Model), it has been made clear in the government circular that under the new merchant discount rate framework to be implemented from 15th of next month, while giving relief to merchants in certain categories, the government has set a concessional rate of Rs 5 per transaction. This simply means that even if the UPI payment is more than Rs 2000 or Rs 10,000 or more, the MDR will remain only Rs 5.
How much will be charged at petrol pump for payment from ₹2001 to ₹5000 through UPI?
A special concessional structure has been set for petrol pumps as per the guidelines of the National Payment Corporation of India (NPCI). Under this, a flat MDR charge of only Rs 5 has been fixed instead of the standard 0.4% percentage rate on fuel payments above Rs 2,000. Whereas all UPI transactions up to Rs 2,000 will be completely fee-free. It is a matter of relief that the direct burden of this merchant fee will not fall on the customers. No additional service charge or fee will be taken from the consumers while filling the petrol and diesel tank. This arrangement will be settled between petrol pump owners and banks. On purchasing fuel at petrol stations through UPI, a flat concessional rate of Rs 5 will be applicable for payments above Rs 2,000. The flat fee of Rs 5 will save petrol pump operators from high processing fees on tank refill.
How much will be charged for payment of more than ₹ 2000 on railway reservation?
According to National Payment Corporation of India (NPCI) railway reservation has also been placed under the flat-rate model (UPI MDR Flat Rate Model). That means, flat Rs 5 MDR will be applicable on transactions of more than Rs 2000 done for train tickets. Make it clear that this will not affect the passenger. This means that the passenger will not have to pay any extra charge to book his ticket, rather this payment will be given by the Indian Railways providing the service.
How much will be charged on electricity bill of more than ₹2000?
According to National Payment Corporation of India (NPCI) electricity bill payment has also been placed under the flat-rate model (UPI MDR Flat Rate Model). Payment of its bills will also fall in this category of fixed MDR. This means that even if the bills of services like electricity bill, municipal water and piped natural gas i.e. PNG are more than Rs 2,000, MDR of Rs 5 will be applicable if payment is received through UPI.
What will happen to the insurance payment?
Concessional rates will also be available on insurance premium payments made through UPI. For premiums above Rs 2,000, a flat MDR of Rs 5 per transaction will be applicable instead of a percentage-based charge. The government has included this sector in the category of flat rate model. That means, no matter how much insurance premium is paid, only Rs 5 will be charged per transaction from the insurance company.
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