Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Livemint
Livemint
Business
Livemint

Charges on UPI transactions? What govt said explained in 10 points

Currently, there are no charges levied on transactions done through UPI.

1) After reports circulated online that there may be the possibility of UPI transactions carrying a service charge, the finance ministry on Sunday denied the news.

2) The RBI discussion paper issued earlier this month on charges in the payment system suggested that UPI payments might be subject to a tiered charge based on various amount brackets.

3) The RBI discussion paper said, UPI as a fund transfer system is like IMPS and therefore, it could be argued that the charges in UPI need to be similar to charges in IMPS for fund transfer transactions.

4) Currently, there are no charges levied on transactions done through UPI.

5) Earlier, Prime Minister Narendra Modi Prime Minister Narendra Modi had hailed the UPI transactions crossing 6 billion in July.

6) The number of digital transactions in July was the highest ever since 2016. 

7) UPI reported 6.28 billion transactions amounting to 10.62 trillion, according to data released by the National Payments Corporation of India (NPCI).

8)"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," the finance ministry said in a tweet.

9) In India, the RTGS and NEFT payment systems are owned and operated by RBI. Systems like IMPS, RuPay, UPI, etc, are owned and operated by the National Payments Corporation of India (NPCI).

10)The government has mandated a zero-charge framework for UPI transactions with effect from January 1, 2020. This means that charges in UPI are nil for users and merchants alike.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.