Service charge

No service charge on UPI, says Center

The Union Department of Finance clarified that no service charges would be levied on UPI transactions.

“UPI is a digital public good with immense convenience for the public and productivity gains for the economy. There is no consideration for the government to levy fees for UPI services. cost recovery must be met by other means,” the finance ministry said in a tweet.

“The government had provided financial support to the #DigitalPayment ecosystem last year and announced the same this year as well to encourage the adoption of #DigitalPayments and the promotion of cost-effective and user-friendly payment platforms,” ​​he said. -he adds.

The government’s clarification comes after media claimed that a latest RBI document titled ‘Discussion Paper on Fees in the Payments System’ contained documents suggesting that the central bank is considering adding fees to each financial transaction made through the UPI system. The reports had sparked buzz on social media, with several people also asking for clarification for the GOI’s handles on the report.

The RBI working paper covers all aspects related to fees not only on UPI but also on other payment systems such as IMPS, NEFT, RTGS, debit, credit cards and PPI.

“Fees for payment services should be reasonable and competitively determined for users while providing an optimal revenue stream for intermediaries.

To ensure this balance, it was deemed useful to carry out a comprehensive review of the different fees levied in payment systems by highlighting different dimensions and soliciting feedback from stakeholders,” he said.