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No plans to charge for UPI services

by TST Team
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United Payments Interface (UPI) is a digital public benefit, according to the Finance Ministry, and there are no plans for the government to impose any fees on it. This assertion allays concerns raised by the RBI’s discussion paper on fees in the payment system, which raised the possibility that UPI payments would be subject to a tiered fee structure depending on different amount ranges.

At this time, there are no fees associated with UPI transactions. “UPI is a digital public good that offers the public tremendous ease and boosts economic output. The government is not considering implementing any fees for UPI services. The Finance Ministry stated in a tweet that there must be other ways to address the service providers’ worries about cost recovery.

According to the RBI discussion paper published earlier this month, UPI is similar to IMPS in terms of fund transfer systems, hence it might be claimed that UPI fund transfer transaction fees should be comparable to IMPS fund transfer fees. Another tweet stated that “the government has announced the same financial support it offered last year for the #DigitalPayment ecosystem to stimulate greater use of #DigitalPayments and promotion of affordable and user-friendly payment platforms.”

Beginning on January 1, 2020, the government will enforce a framework with zero fees for UPI transactions. As a result, neither users nor merchants will incur any fees when using UPI.

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