Last Update: 21 August 2022, 23:13 IST
While the transactions done through UPI are free, the Reserve Bank of India had sought feedback from stakeholders on the possibility of levying a tiered fee on them. (Image: News18)
The statement allays fears generated by RBI’s discussion paper on fees in payment systems, suggesting that UPI payments may be subject to a tiered fee based on different amount brackets.
The Finance Ministry on Sunday said that the United Payments Interface (UPI) is a digital public commodity and the government is not contemplating imposing any duty on it. The statement allays fears generated by RBI’s discussion paper on fees in payment systems, suggesting that UPI payments may be subject to a tiered fee based on different amount brackets.
Currently, no charges are levied on transactions done through UPI. “UPI is a digital public good with immense convenience for the public and productivity gains for the economy. There is no idea in the government to levy any charges for UPI services. The concerns of the service providers for cost recovery will have to be met through other means,” the finance ministry said in a tweet.
RBI’s discussion paper released earlier this month said, UPI as a fund transfer system is like IMPS and hence, it can be argued that charges in UPI should be similar to charges in IMPS for fund transfer transactions. needed. Another tweet read, “Govt provided financial support for the #DigitalPayment ecosystem last year and this year also announced to encourage the adoption of #DigitalPayments and promote payment platforms which are affordable and user friendly. suited.”
The government has made a zero-fee framework mandatory for UPI transactions with effect from January 1, 2020. This means that the charges in UPI are zero for users and merchants alike.
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