The Government of India will not levy any charges on Unified Payments Interface (UPI) services. The Finance Ministry said in a tweet that UPI will be free. Currently, there are no charges on transactions done through UPI.
The Government of India will not levy any charges on Unified Payments Interface (UPI) services. The Finance Ministry said in a tweet that UPI will be free. The ministry in its tweet said, “UPI is a public digital commodity of immense convenience to the public. The government has no idea to levy any charges for UPI services.”
1)The Finance Ministry on Sunday denied the news after an online report on service charges on UPI transactions was circulated.
2)The RBI discussion paper released earlier this month suggested that UPI payments may be subject to a tiered fee based on different amount brackets.
3)The RBI discussion paper states, that UPI as a fund transfer system is like IMPS, hence the charges in UPI should be the same as the charges in IMPS for fund transfer transactions.
4)Currently no charges are levied on transactions done through UPI.
5)Earlier, Prime Minister Narendra Modi had lauded the UPI transactions crossing 6 billion in July.
6)The number of digital transactions in July was the highest since 2016.
7)According to the data released by the National Payments Corporation of India (NPCI), a total of 6.28 billion transactions took place through UPI, totaling ₹10.62 trillion.
8)The government provided financial support for the digital payment ecosystem last year and this year also announced to encourage the adoption of digital payments and promote payment platforms that are economical and user-friendly.
9) In India, RTGS and NEFT payment systems are owned and operated by RBI. Systems like IMPS, RuPay, UPI, etc., are owned and operated by the National Payments Corporation of India (NPCI).
10)The government has made a zero-fee framework mandatory for UPI transactions with effect from January 1, 2020. This means that charges in UPI are zero for users and merchants alike.