Amid reports that there may be a possibility of UPI transactions carrying a service charge, the government on Sunday issued a clarification.
“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. (1/2),” 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. (2/2),” it added.
An immediate clarification from the government comes after multiple media reports claimed that the latest RBI paper titled “Discussion Paper on Charges in Payment System” had literature implying that the bank was considering adding fees to each financial transaction made through the UPI system. The reports had sparked buzz on social media with several people also seeking clarification for GOI handles on the report.
The discussion paper by RBI covers all aspects relating to charges on not just UPI but other Payment Systems like IMPS, NEFT, RTGS, debit, credit cards, and PPIs.
“Charges for payment services should be reasonable and competitively determined for users while also providing an optimal revenue stream for the intermediaries. To ensure this balance, it was considered useful to carry out a comprehensive review of the various charges levied in the payment systems by highlighting different dimensions and seeking stakeholder feedback,” the discussion paper said.