The Government of India will not levy any fees on Unified Payments Interface (UPI) companies. In a tweet, the finance ministry stated that UPI would stay free. “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 tweet learn.
UPI is a digital public good with immense comfort for the general public & productiveness beneficial properties for the financial system. There isn’t any consideration in Govt to levy any fees for UPI companies. The issues of the service suppliers for price restoration must be met by different means. (1/2)
— Ministry of Finance (@FinMinIndia) August 21, 2022
1) After stories circulated on-line that there could also be the potential for UPI transactions carrying a service cost, the finance ministry on Sunday denied the information.
2) The RBI dialogue paper issued earlier this month on fees within the cost system steered that UPI funds is perhaps topic to a tiered cost primarily based on numerous quantity brackets.
3) The RBI dialogue paper stated, UPI as a fund switch system is like IMPS and subsequently, it might be argued that the fees in UPI have to be just like fees in IMPS for fund switch transactions.
4) Currently, there are not any fees levied on transactions carried out by UPI.
5) Earlier, Prime Minister Narendra Modi Prime Minister Narendra Modi had hailed the UPI transactions crossing 6 billion in July.
6) The variety of digital transactions in July was the best ever since 2016.
7) UPI reported 6.28 billion transactions amounting to ₹10.62 trillion, in accordance with information launched by the National Payments Corporation of India (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 stated in a tweet.
9) In India, the RTGS and NEFT cost methods are owned and operated by RBI. Systems like IMPS, RuPay, UPI, and so forth, are owned and operated by the National Payments Corporation of India (NPCI).
10)The authorities has mandated a zero-charge framework for UPI transactions with impact from January 1, 2020. This signifies that fees in UPI are nil for customers and retailers alike.
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