No charges on UPI transactions clarifies Finance Ministry

The Ministry of Finance on Sunday clarified that there would not be any service charge levied on UPI transactions. UPI is a digital public good and it makes people do easy transactions, increases productivity, and ultimately helps the economy.

“UPI is a digital public good with immense convenience for the public & productivity gains for the economy. There is no consideration in Govt to levy any charges for UPI services. The concerns of the service providers for cost recovery have to be met through other means,” the Finance Ministry said in a tweet.

“The Govt had provided financial support for #DigitalPayment ecosystem last year and has announced the same this year as well to encourage further adoption of #DigitalPayments and promotion of payment platforms that are economical and user-friendly, ” it added.

The clarification from the government came after media reports claimed that a latest RBI paper titled “Discussion Paper on Charges in Payment System” had literature implying that the central bank was considering adding fees to each financial transaction made through the UPI system.

The reports had sparked buzz on social…

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