File photo Photograph:( Twitter )
The Indian finance ministry on Sunday said United Payments Interface (UPI) is a digital public good and there is no consideration in the government to levy any charges on this. This statement allays fear emanating from the RBI’s discussion paper on charges in the payment system, suggesting that UPI payments might be subject to a tiered charge based on various amount brackets.
India’s Ministry of Finance on Sunday stated clearly that no fees are being considered for the country’s ubiquitous digital payment system UPI, or United Payments Interface.
The ministry stated that other methods would need to be used to address the UPI service providers’ concerns regarding cost recovery.
It also mentioned UPI as a digital public good that offers the general public tremendous convenience and boosts economic productivity.
“UPI is a digital public good with immense convenience for the public & 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,” In several tweets, the Ministry of Finance made this statement.
UPI is a digital public good with immense convenience for the public & 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. (1/2)
The RBI discussion paper issued earlier this month said, UPI as a fund transfer system is like IMPS and, therefore, it could be argued that the charges in UPI need to be similar to those in IMPS for fund transfer transactions.
With effect from January 1, 2020, the government has mandated a zero-fee structure for UPI transactions. This indicates that both users and merchants in UPI incur no fees.
(With inputs from agencies)
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