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.


  • 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.

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