No charges will be levied on UPI services - Finance Ministry

Tags: Economy/Finance

The Finance Ministry on August 21 said that the United Payments Interface (UPI) is a useful digital service for the people and the government does not intend to levy any charges on it.

IMPORTANT FACTS -

• This statement of the Finance Ministry allays the apprehensions arising out of the discussion paper of the Reserve Bank of India (RBI) on charges in the UPI payment system.

• The discussion paper suggests that UPI payments may be charged with different amount categories.

• In this paper, there was talk of levying a special charge (Merchant Discount Rate) on UPI transactions.

• This charge depends on the amount transferred.

• Currently, there are no charges for transactions through UPI.

About UPI :

• Unified Payments Interface (UPI) is a single platform that integrates various banking services and facilities under one umbrella.

• It is developed by National Payments Corporation of India (NPCI).

• The names of the top UPI apps currently are – PhonePe, Paytm, Google Pay, Amazon Pay and BHIM.

• NPCI launched UPI in 2016 with 21 member banks.

For more update please visit news of 2 August.