Charges on UPI payments: Know the saga, so far!
Prime Minister Narendra Modi has hailed UPI transactions as a collective resolve of the people of India to adapt to newer technologies.
RBI discussion paper, issued earlier in August, expressed that since the UPI system is based on a system just like immediate payment service (IMPS), the charges in UPI need to be levied in the same way as IMPS for fund transfer. This raised questions about the possibility of RBI charging fees for UPI payments, which has created a buzz among the general public.
However, Finance Minister on Sunday night clarified this via a tweet stating, “UPI is a digital public good with immense convenience for the public & productivity gains of the economy”.
The Government of India provided financial aid last year in support of the charges for UPI and shall continue to do the same this year. The ministry said that there is no consideration in levying charges on UPI since it is determined for "digital public good".
Following this, RBI seems to have made a U-turn regarding the statement issued earlier. Issuing a disclaimer, RBI reiterates that it has neither taken any view nor has a specific opinion on the aforementioned discussion paper. However, the industry has argued that zero fees are a loss to the ecosystem, which shall only discourage investments in the coming times.
Meanwhile, Prime Minister Narendra Modi has hailed UPI transactions as a collective resolve of the people of India to adapt to newer technologies.
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