The Ministry of Finance has clearly stated today that no charges for UPI services are contemplated by the Government of India.
The ministry said other methods should be used to address UPI service providers’ concerns about cost recovery.
He also mentioned UPI as a digital public good that provides the general public with considerable convenience and boosts economic productivity.
“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 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 platforms economical and user-friendly payment methods”. In several tweets, the Ministry of Finance made this statement.
UPI is a digital public good with immense convenience for the public and productivity gains for the economy. There is no consideration for the government to charge fees for UPI services. Service providers’ concerns about cost recovery must be addressed through other means. (1/2)
— Ministry of Finance (@FinMinIndia) August 21, 2022
The RBI working paper released earlier this month stated that UPI as a remittance system is like IMPS and therefore it could be argued that UPI fees must be similar to those of the IMPS for fund transfer transactions.
Effective January 1, 2020, the government imposed a zero-fee structure for UPI transactions. This indicates that UPI users and merchants incur no fees.
(With agency contributions)
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