Govt clarifies there is no plan to levy any charges for UPI services

22 Aug 2022 , 12:31 PM

The government has clarified that there is no plan to levy any charges for Unified Payments Interface (UPI) services. In a tweet on Sunday (21 August), the Finance Ministry said: UPI is a digital public good with immense convenience for the public and 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. 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, the ministry added. The clarification from the Ministry of Finance has come days after the Reserve Bank of India (RBI) sought public feedback on UPI payments and charges. According to the RBI, fund transfers made through UPI are equivalent to those made through IMPS (Instant Payment Service), so theoretically, UPI should charge the same fee as IMPS. UPI clocked over 6 billion transactions in July: the highest ever by Indias flagship digital payments platform since its inception in 2016. UPI reported 6.28 billion transactions amounting to Rs 10.62 trillion, according to data released by the National Payments Corporation of India (NPCI), which operates the platform. Powered by Capital Market – Live News