NEW DELHI: The Union Ministry of Finance has clarified that no service charges will be levied on UPI transactions.
“UPI is a digital public good with immense convenience for the public and productivity gains for the economy. The government has no plans to levy fees for UPI services. costs 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 documentation suggesting that the central bank is considering adding fees to every 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 ensuring an optimal revenue stream for intermediaries. in payment systems by highlighting different dimensions and soliciting feedback from stakeholders,” he said.