This news covers – “UPI Transactions Charges & Government Final decision!”
Finally the Government has declared its decision on the Unified Payments Interface (UPI). The decision clearly states that not a single penny will be charged for upi transactions. Moreover another confirmation we get from the finance ministry tweet which reflects that – UPI will continue to be free.
In support of the decision announced,the tweet states that – UPI is a digital goods offering great convenient experience to users for transactions. In addition it also boosts up the economic productivity of the country. However,other methods may be implemented by service providers to recover their funds.
Key points on Upi transactions charges
1) The finance ministry on Sunday dismissed internet rumours that UPI transactions would be subject to a service fee.
2) According to the RBI discussion paper on fees in the payment system published earlier this month, UPI payments could be subject to a tiered fee structure depending on different amount ranges.
3) The RBI discussion paper said that because IMPS and UPI are both fund transfer systems, it may be claimed that UPI’s fees for fund transfer transactions should be comparable to IMPS fees.
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4) There aren’t any fees associated with UPI transactions at the moment.
5) Prime Minister Narendra Modi has praised UPI for reaching 6 billion transactions in July.
6) In July, there were the most digital transactions since 2016.
7) Information made available by the National Payments Corporation of India shows that UPI registered 6.28 billion transactions totaling 10.62 trillion INR (NPCI).
8) The finance ministry tweeted, “The Govt had granted financial assistance for the #DigitalPayment ecosystem last year. This year also it has announced the same, to encourage further usage of #DigitalPayments. In addition they also encourage promotion of payment systems that are affordable and user-friendly.
9) RBI is the owner and operator of the RTGS and NEFT payment systems in India. The National Payments Corporation of India owns and manages platforms such as IMPS, RuPay, UPI, and others (NPCI).
10) As of January 1, 2020, the government has required a zero-fee structure for UPI transactions. This indicates that both consumers and merchants in UPI incur no fees.