There is no plan to charge for UPI services: Finance Department

22 Aug 2022 , 11:44 AM

The United Payments Interface (UPI) is a digital public good, according to the Finance Ministry, and no taxes are being considered by the government for this. This assertion allays concerns raised by the RBI’s discussion paper on fees in the payment system, which raised the possibility that UPI payments would be subject to a tiered fee structure depending on different amount ranges.

At this time, there are no fees associated with UPI transactions.

“UPI is a digital public good that offers the public great convenience and boosts economic productivity. The government is not considering implementing any fees for UPI services. Other methods must be used to address the service providers’ concerns over cost recovery, “a tweet from the Finance Ministry stated.

According to the RBI discussion paper published earlier this month, UPI is similar to IMPS in terms of fund transfer systems, so it might be claimed that UPI fund transfer transaction fees should be comparable to IMPS fund transfer fees.