The Indian government will not levy any fees for Unified Payments Interface (UPI) services. The finance ministry stated in a tweet that UPI would remain free. "UPI is a digital public good that provides enormous convenience to the public while also increasing economic productivity. The government is not considering charging for UPI services. Service providers' concerns about cost recovery must be addressed in other ways "The tweet stated.

 

1) After reports circulated online that UPI transactions could incur a service charge, the finance ministry denied the news on Sunday.

 

2) According to the RBI discussion paper on payment system charges released earlier this month, UPI payments may be subject to a tiered charge based on various amount brackets.

 

3) According to the RBI discussion paper, UPI is a fund transfer system similar to IMPS, so the charges in UPI for fund transfer transactions should be similar to those in IMPS.

 

4) Currently, there are no fees associated with UPI transactions.

 

5) Previously, Prime Minister Narendra Modi Prime Minister Narendra Modi celebrated the 6 billion UPI transactions in July.

 

6) In July, the number of digital transactions was the highest since 2016.

 

7) According to National Payments Corporation of India data, UPI reported 6.28 billion transactions totaling 10.62 trillion (NPCI).

 

8)"The Govt provided financial support for the #DigitalPayment ecosystem last year and has announced the same this year to encourage further adoption of #DigitalPayments and promotion of payment platforms that are economical and user-friendly," the finance ministry tweeted.

 

9) The RBI owns and operates the RTGS and NEFT payment systems in India. The National Payments Corporation of India owns and operates systems such as IMPS, RuPay, and UPI (NPCI).

 

10) Beginning January 1, 2020, the government has mandated a zero-cost framework for UPI transactions. This means that UPI charges are nil for both users and merchants.