No consideration to levy any charges for UPI services: Finance Ministry
This statement allays fear emanating from the RBI's discussion paper on charges in the payment system suggesting that UPI payments might be subject to a tiered charge based on various amount brackets.
The Finance Ministry on Sunday said United Payments Interface (UPI) is a digital public good and the government doesn't plan to levy any charges on this.
This statement allays fear emanating from the Reserve Bank of India's (RBI) discussion paper on charges in the payment system, suggesting that UPI payments might be subject to a tiered charge based on various amount brackets.
Currently, there are no charges 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 consideration in Govt to levy any charges for UPI services. The concerns of the service providers for cost recovery have to be met through other means," the Finance Ministry said in a tweet.
The RBI discussion paper issued earlier this month said, UPI as a fund transfer system is like IMPS and therefore, it could be argued that the charges in UPI need to be similar to charges in IMPS for fund transfer transactions.
"The Govt had provided financial support for #DigitalPayment ecosystem last year and has announced the same this year as well to encourage further adoption of #DigitalPayments and promotion of payment platforms that are economical and user-friendly," another tweet said.
The government has mandated a zero-charge framework for UPI transactions with effect from January 1, 2020. This means that charges in UPI are nil for users and merchants alike.