The National Payments Corporation of India (NPCI) on Wednesday clarified that they are only applicable for prepaid payment instruments (PPI) transactions and there is no charge to customers.

On that clarification, the NPCI also said that there are no charges for the bank account to bank account-based UPI payments.

In a recent circular, the NPCI reportedly said that using prepaid payments instruments (PPIs) gift cards, and wallets, among others, for transactions through UPI will attract an interchange fee of up to 1.1 percent starting April 1. The charges will be levied if the transaction is more than Rs 2,000.