UPI Payment Fees: Why You Shouldn’t Worry

Last week, there were many reports claiming that the Indian government will start imposing additional fees on UPI payments. Thoughts of Pay UPI Impeachment doesn’t seem to be going down but the Indian government has now clarified its stance on the whole matter.
In a tweet, the financial has made it clear that the government will not impose any fees on the use of UPI services.
“UPI is a digital public good with immense convenience to the public and increased productivity for the economy. The government is not considering levying any fees on UPI services,” the Treasury said in a tweet.

UPI Payment Fees: What Fueled The Whole Problem

UPI transactions in India have experienced tremendous growth. According to PTI’s report, in Q1 2022, there were more than 14.55 billion UPI transactions in terms of volume. In terms of value, UPI transactions stand at a whopping Rs 26.19 trillion. Increase 99% in volume and 90% in value compared to 2021.
News of the charged UPI payment appears when RBI released a discussion document in which it sought feedback from stakeholders on the idea of ​​fee structures for various digital payments, including RBI. In the discussion paper, the RBI explicitly stated, “The RBI has not issued guidance regarding fees for UPI transactions. The government has introduced a free framework for UPI transactions effective January 1, 2020. This means that fees in UPI are zero for users and merchants alike. Noting that the purpose of this discussion paper was to solicit general feedback, some questions about the approach that should be taken were included. ”
The finance ministry in its tweet also made it clear that it will continue to encourage the adoption of digital payments. “The government provided financial support to the #DigitalPayment ecosystem last year and made the same announcement this year to encourage continued adoption of #DigitalPayments and promote eco-friendly and economical payment platforms. user-friendly,” reads the tweet.

Source link


News7h: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button