New Delhi, Aug 21 : The Union Finance Ministry has clarified that there will be no service charges to be imposed on UPI transactions. “UPI is an electronic public good with huge accessibility for the public as well as productivity benefits to the economy.
There is no intention in Govt to impose any costs to use UPI services.The demands of those who provide services in cost recovery must be addressed through other methods,” the Finance Ministry stated in tweet.
“The Govt had provided financial support to the #DigitalPayment ecosystem last year, and is announcing the same in 2018 in order to promote further acceptance of DigitalPayments and the promotion of payment systems that are affordable as well as user-friendly ” the statement added.
The clarification by the government comes following reports in the media claimed that the latest RBI document called “Discussion Paper on Charges in the Payment System” contained a document that suggested the central bank was looking into adding fees to every financial transaction processed through the UPI system.
The report had caused a stir across social media with numerous users seeking clarifications for GOI handles on the report.
The discussion paper issued by the RBI covers all aspects related to charges not only UPI but also other payment methods like IMPS and the NEFT system, RTGS, debit, PPIs and credit cards.
“Charges for the payment service must be fair and competitively priced for users , while also providing an the most efficient revenue stream for intermediaries.To achieve this balance, it was deemed important to conduct an exhaustive review of the various charges imposed in the payment services by highlighting the various dimensions and soliciting feedback from stakeholder,” it said.
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