Do UPI transactions carry charges?
The Unified Payments Interface (UPI) services won’t be subject to any fees from the Indian government. The finance ministry declared in a tweet that UPI will continue to be free. “UPI is a digital public good that offers the public great convenience and boosts economic output. The government is not considering implementing any fees for UPI services. Other methods must be used to address the service providers’ concerns around cost recovery “read the tweet.
1) The finance ministry on Sunday dismissed online rumors that UPI transactions would be subject to a service fee. The rumors had been making the rounds on social media.
2) According to the RBI discussion paper on fees in the payment system published earlier this month, UPI payments might be subject to a tiered fee structure depending on different amount ranges.
3) The RBI discussion paper stated that because IMPS and UPI are both fund transfer systems, it may be claimed that UPI’s fees for fund transfer transactions should be comparable to IMPS fees.
4) There aren’t any fees associated with UPI transactions at the moment.
Prime Minister Narendra Modi earlier Narendra Modi, the prime minister, has praised UPI for reaching 6 billion transactions in July.
6) In July, there were the most digital transactions since 2016.
7) Information made available by the National Payments Corporation of India shows that UPI registered 6.28 billion transactions totaling 10.62 trillion INR (NPCI).
8)”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,” the finance ministry said in a tweet.
9) The RBI owns and runs the RTGS and NEFT payment systems in India. The National Payments Corporation of India is the owner and operator of systems including IMPS, RuPay, UPI, and others (NPCI).
10) Beginning on January 1, 2020, the government will enforce a framework with zero fees for UPI transactions. This indicates that both consumers and merchants in UPI incur no fees.
Edited by- Janhvi