The Finance Ministry on Sunday mentioned United Funds Interface (UPI) is a digital public good and there’s no consideration within the authorities to levy any prices on this.
This assertion allays worry emanating from the RBI’s dialogue paper on prices within the cost system suggesting that UPI funds could be topic to a tiered cost primarily based on numerous quantity brackets.
At the moment, there aren’t any prices levied on transactions carried out by way of UPI.
“UPI is a digital public good with immense comfort for the general public & productiveness positive aspects for the economic system. There is no such thing as a consideration in Govt to levy any prices for UPI providers. The considerations of the service suppliers for price restoration must be met by way of different means,” the Finance Ministry mentioned in a tweet.
UPI is a digital public good with immense comfort for the general public & productiveness positive aspects for the economic system. There is no such thing as a consideration in Govt to levy any prices for UPI providers. The considerations of the service suppliers for price restoration must be met by way of different means. (1/2)
— Ministry of Finance (@FinMinIndia) August 21, 2022
The RBI dialogue paper issued earlier this month mentioned, UPI as a fund switch system is like IMPS and due to this fact, it could possibly be argued that the fees in UPI have to be just like prices in IMPS for fund switch transactions.
“The Govt had supplied monetary assist for #DigitalPayment ecosystem final 12 months and has introduced the identical this 12 months as effectively to encourage additional adoption of #DigitalPayments and promotion of cost platforms which are economical and user-friendly,” one other tweet mentioned.
The federal government has mandated a zero-charge framework for UPI transactions with impact from January 1, 2020. Which means that prices in UPI are nil for customers and retailers alike.
