16.9 C
London
Saturday, October 1, 2022

No Charges To Be Paid On Payment From UPI: Finance Ministry

The Union Finance Ministry has stated that there will be no charge for paying through UPI, and the Ministry said that no such consideration has been taken. According to the Ministry, other options will be considered to cover the cost.

The Government has said that it is not contemplating levying any charge on transactions done through the Unified Payments Interface (UPI). For a few days, there was a discussion that RBI may levy a charge on the payment made through UPI. However, this statement from the Government has brought relief to users. The Government has said that other options will be considered for the cost recovery of service providers.

The Finance Ministry tweeted, ‘UPI is such a digital tool that gives a lot of convenience to the people. The Government is not considering imposing any charge on the UPI service. Service Providers are concerned about cost recovery which will be considered for meeting other options.’

The Ministry further said the Government had announced a helping hand to promote the digital payment ecosystem last year. This help will continue to promote digital payments in the future. Recently, the RBI sought feedback from people on different charges proposed on the payment system, including UPI.

Under the development and regulatory policies of the RBI, a discussion paper named ‘Charges in Payment System’ was put up for public feedback. RBI had suggested that a charge may be levied for different amount brackets. According to the RBI, whether it is a payment system or any other economic activity, the meaning of free service is beyond comprehension. It is necessary to have an element of dedication to the welfare of the people and nation-building.

The number of people using UPI is continuously increasing. According to data, 600 crore transactions took place in July alone, and a total amount of Rs 10.2 lakh crore was transacted.

Latest news
Related news