In a tweet, the Ministry of Finance has made it clear that the federal government won’t be imposing any expenses for utilizing UPI providers.
“UPI is a digital public good with immense comfort for the general public & productiveness positive factors for the economic system. There isn’t any consideration in Govt to levy any expenses for UPI providers,” the finance ministry stated in a tweet.
UPI cost expenses: What prompted the entire difficulty
UPI transactions in India have seen an incredible progress. In accordance with a report by PTI, in Q1 2022, by way of quantity there have been over 14.55 billion UPI transactions. When it comes to worth, UPI transactions stood at whopping Rs 26.19 trillion. There was a 99% improve by way of quantity and 90% in worth in comparison with 2021.
The information of UPI funds being charged got here in when the RBI launched a dialogue paper the place it sought suggestions from stakeholders on the thought of a payment construction for numerous digital funds, which included RBI. Within the dialogue paper, RBI had categorically acknowledged, “RBI has not issued directions relating to expenses for UPI transactions. The Authorities has mandated a zero-charge framework for UPI transactions with impact from January 1, 2020 . Which means expenses in UPI are nil for customers and retailers alike. Preserving in view that the intent of this dialogue paper is to elicit normal suggestions, a number of questions on what strategy must be adopted, have been included.”
The finance ministry in its tweet additional made it clear that it’s going to proceed to encourage adoption of digital funds. “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 can be economical and user-friendly,” learn the tweet.