UPI transactions include charges? 10 points explaining what government said

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Charges for UPI transactions: According to the RBI discussion paper on fees in the payment system published earlier this month, UPI payments may be subject to a tiered charge depending on different amount ranges.

The Unified Payments Interface (UPI) services won’t be subject to any fees from the Indian government. The finance ministry declared in a tweet that UPI will continue to be free. “UPI is a digital public good that offers the public great convenience and boosts economic output. The government is not considering implementing any fees for UPI services. Other methods must be used to address the service providers’ concerns around cost recovery “read the tweet.

1) The finance ministry on Sunday dismissed online rumours that UPI transactions would be subject to a service fee. The rumours had been making the rounds on social media.

2) According to the RBI discussion paper on fees in the payment system published earlier this month, UPI payments might be subject to a tiered fee structure depending on different amount ranges.

3) The RBI discussion paper stated that because IMPS and UPI are both fund transfer systems, it may be claimed that UPI’s fees for fund transfer transactions should be comparable to IMPS fees.

4) There aren’t any fees associated with UPI transactions at the moment.

5) Prime Minister Narendra Modi earlier Narendra Modi, the prime minister, has praised UPI for reaching 6 billion transactions in July.

6) In July, there were the most digital transactions since 2016.

7) Information made available by the National Payments Corporation of India shows that UPI registered 6.28 billion transactions totaling 10.62 trillion INR (NPCI).

8)”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 finance ministry said in a tweet.

9) In India, the RTGS and NEFT payment systems are owned and operated by RBI. Systems like IMPS, RuPay, UPI, etc, are owned and operated by the National Payments Corporation of India (NPCI).

10)The government has mandated a zero-charge framework for UPI transactions with effect from January 1, 2020. This means that charges in UPI are nil for users and merchants alike.

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