The Union Finance Ministry has processed that no service fee would be levied on UPI transactions.

HIGHLIGHTS
There was no consideration in Government to levy any charges for UPI services
The government had given financial support for #DigitalPayment ecosystem
The charges for payment services should be reasonable for users

As per the Finance Ministry's Tweets, “UPI was a digital public good with vast convenience for the general public & productivity gains for the economy. There has been no consideration in Government to levy any charges for UPI services. The considerations of the service providers for cost recovery have to be met via other means.” 

It had added that “the government had given financial support for #DigitalPayment ecosystem last year and it has declared the same this year along with encouraging additional adoption of #DigitalPayments and promotion of payment platforms which were economical and easy.'

The government gave its clarification after the media reports had claimed that a latest RBI paper titled “Discussion Paper on Charges in Payment System” had literature which would imply that the central bank would be considering to add up fees to every monetary transaction which was made through the UPI system. Well, the reports had sparked buzz on social media along with many people who were even seeking clarification for GOI handles on the report.

Therefore, the discussion paper by the RBI covers all aspects regarding charges on not simply UPI but different payment systems like IMPS, NEFT, RTGS, debit, credit cards and PPIs.

It has clearly mentioned that “charges for payment services ought to be reasonable and competitively determined for users at the same time when it was giving optimum revenue stream for the intermediaries. In order to confirm this balance, it was absolutely considered to be useful to help out a comprehensive review of the varied charges which was levied within the payment systems by highlighting totally different dimensions and seeking stakeholder feedback.”

Also Read: 'Online Card Transaction' Through 'Tokenisation' New RBI Rules From july 1, 2022