UPI services to remain free: No consideration to levy any charges, says Govt
Amid confusion over UPI transaction charges, the Union Finance Ministry has clarified that no service charge would be levied on UPI transactions.
In a series of tweets, the Finance Ministry clarified, “UPI is a digital public good with immense convenience for the public & 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.”
UPI is a digital public good with immense convenience for the public & 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. (1/2)
— Ministry of Finance (@FinMinIndia) August 21, 2022
It further tweeted, “The Govt had provided financial support for Digital Payment ecosystem last year and has announced the same this year as well to encourage further adoption of Digital Payments and promotion of payment platforms that are economical and user-friendly.”
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. (2/2)
— Ministry of Finance (@FinMinIndia) August 21, 2022
The clarification from the government comes after media reports claimed that the latest RBI paper titled “Discussion Paper on Charges in Payment System” had literature implying that the central bank was considering adding fees to each financial transaction made through the UPI system. The reports had sparked buzz on social media with several people also seeking clarification for GOI handles on the report.
The discussion paper by the RBI covers all aspects relating to charges on not just UPI but other payment systems like IMPS, NEFT, RTGS, debit, credit cards, and PPIs.
“Charges for payment services should be reasonable and competitively determined for users while also providing an optimal revenue stream for the intermediaries. To ensure this balance, it was considered useful to carry out a comprehensive review of the various charges levied in the payment systems by highlighting different dimensions and seeking stakeholder feedback,” it said.
[With Inputs from IANS]
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