The government does not plan to levy fees on transactions made through the Unified Payments Interface (UPI), the Union Finance Ministry said on Sunday. It came amid speculation that the government may seek to impose fees on the popular mode of financial transaction. The Center also said other ways would be developed for UPI platforms to recoup the cost of their services.
“UPI is a digital public good with immense convenience for the public and productivity gains for the economy. The government has no plans to levy fees for UPI services. costs must be met by other means,” the Department of Ginance said in a tweet.
“The government had provided financial support to the #DigitalPayment ecosystem last year and announced the same this year as well to encourage the adoption of #DigitalPayments and the promotion of cost-effective and user-friendly payment platforms,” he said. -he adds.
Recently, the Reserve Bank of India (RBI) had sought public comments on various proposed changes in the payment system, including the possibility of imposing tiered fees on transactions made through UPI.
As announced in the development and regulatory policy statement dated December 8, 2021, the central bank has released a discussion paper on “Fees in Payments Systems” for public comment, the RBI said in a statement. The working document was released on August 17.
Considered one of the most successful real-time payments (RTP) systems in the world, UPI recorded a volume of USD 940 billion (39 billion transactions) in 2021, or 31% of Indian GDP.
(With agency contributions)