Will there be an extra charge for paying through UPI? Know what Modi government said
UPI Payment Fee Latest News: The government is not considering any charges on UPI services, the Finance Ministry clarified today. The ministry said the concerns of the UPI service providers for cost recovery will have to be met through other means. It also noted that UPI is a digital public good with immense convenience for the public and productivity benefits for the economy.
“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 government provided financial support for the #DigitalPayment ecosystem last year and this year has also announced to encourage the adoption of #DigitalPayments and promote payment platforms that are affordable and user-friendly,” the finance ministry said in a statement. Said in the series of tweets.
The Finance Ministry’s clarification comes days after the Reserve Bank of India (RBI) sought public feedback on UPI payments and charges.
“RBI has not issued instructions regarding charges for UPI transactions. The government has mandated a zero-fee framework for UPI transactions with effect from January 1, 2020. This means that charges in UPI are zero for users and merchants alike. Keeping in view that the purpose of this discussion paper is to elicit general feedback, certain questions as to which approach should be taken have been included,” RBI said in its ‘Discussion Paper on Fees in Payment Systems’.
Noting that UPI is similar to IMPS as a fund transfer system, the discussion paper states, “Therefore, it can be argued that charges in UPI should be similar to charges in IMPS for fund transfer transactions. A tiered charge may be levied depending on the band of varying amount.”
The Finance Ministry on Sunday said that the ‘United Payment Interface’ (UPI) is a useful digital service for the people and the government is not contemplating imposing a fee on it. This statement of the ministry allays the apprehensions arising out of the discussion paper of the Reserve Bank of India (RBI) on charges in the payment system. It has been said in the suggestion of RBI that charges can be levied on different amount categories on UPI payments. Please note that as of now, there is no charge for payment through UPI.
UPI a useful digital service for people
RBI had recommended charges on some transactions
There are no charges for paying through UPI as of now
UPI: The Finance Ministry on Sunday said that the ‘United Payment Interface’ (UPI) is a useful digital service for the people and the government is not contemplating imposing a fee on it. This statement of the ministry allays the apprehensions arising out of the discussion paper of the Reserve Bank of India (RBI) on charges in the payment system. It has been said in the suggestion of RBI that charges can be levied on different amount categories on UPI payments. Please note that as of now, there is no charge for payment through UPI.
No charges for UPI services
In a tweet, the Finance Ministry said, “UPI is a useful service for the people, which brings great convenience to the people and increases the productivity of the economy. The government is not considering imposing any charges for UPI services. To recover the cost, the concerns of the service provider will have to be met through other means. It is announced to create and promote user friendly payment platforms.
Six billion UPI transactions historic, PM Modi praised
Let us let you know that a few days ago, Prime Minister Narendra Modi called a record six billion transactions in the month of July through UPI (Unified Payments Interface) as a historic achievement. He said that it reflects the collective resolve of the people to adopt new technologies and make the economy ‘clean’. Modi said this in response to the tweet of Finance Minister Nirmala Sitharaman. Tagging the media report, Sitharaman wrote on Twitter, “Record 6 billion transactions were done through UPI in July. This is the highest figure since 2016.”
