Government imposes surcharge on payment apps for UPI payments above ₹2,000

Current Context: The National Payments Corporation of India (NPCI) has issued a circular suggesting "Prepaid Payment Instruments (PPI)" charges on merchant transactions on Unified Payments Interface (UPI).

• From April 1, 2023, PPI charges will be levied on transactions above ₹2,000 on UPI. This will result in a fee of 1.1% of the transaction value.
• The new NPCI guidelines on wallet interoperability establish interchange fees for the use of wallets, which will be paid to wallet issuers such as Paytm, PhonePe and Google Pay.
• Under the 'Payment and Collection Systems Act' of 2007, the Reserve Bank of India (RBI) and the Indian Banks' Association (IBA) jointly set up the National Payments Corporation of India (NPCI). Its main objective is to provide physical and electronic payment infrastructure to the entire banking system of India.

Question:

Q.1 What is the surcharge imposed by the Indian government on payment apps for UPI payments above 2,000?
a. 0.5% 

b. 1.1% 

c. 1.5% 

d. 2%