No consideration to levy any fees for UPI providers: Finance Ministry

The Finance Ministry on Sunday stated United Funds Interface (UPI) is a digital public good and there’s no consideration within the authorities to levy any fees on this. This assertion allays concern emanating from the RBI’s dialogue paper on fees within the cost system suggesting that UPI funds could be topic to a tiered cost based mostly on numerous quantity brackets.

At the moment, there are not any fees levied on transactions achieved by UPI.

“UPI is a digital public good with immense comfort for the general public & productiveness good points for the financial system. There isn’t any consideration in Govt to levy any fees for UPI providers. The issues of the service suppliers for value restoration should be met by different means,” the Finance Ministry stated in a tweet.

The RBI dialogue paper issued earlier this month stated, UPI as a fund switch system is like IMPS and subsequently, it may very well be argued that the fees in UPI have to be just like fees in IMPS for fund switch transactions.

“The Govt had offered monetary assist for #DigitalPayment ecosystem final 12 months and has introduced the identical this 12 months as effectively to encourage additional adoption of #DigitalPayments and promotion of cost platforms which can be economical and user-friendly,” one other tweet stated.

The federal government has mandated a zero-charge framework for UPI transactions with impact from January 1, 2020. Which means that fees in UPI are nil for customers and retailers alike. PTI DP MR MR

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