Clarification comes in the middle of speculation that UPI transactions can demand additional costs to maintain payment infrastructure. The government said there was no consideration to collect fees for UPI services.The government said that his party provided financial support this year and last year to adopt UPI.RBI has sought feedback related to the subject.
The central government has clarified its position on reports that claim that they can collect additional fees for UPI payments. In a series of tweets on Sunday, the Ministry of Finance said that UPI (Unified Payments Interface) was “digital public goods,” and there was no consideration to collect any fees for UPI services. The tweet also said that recovery costs must be met in other means, and the government has provided financial support for the digital payment ecosystem in this country.
The ministry added that they announced this year’s assistance to encourage further digital payment adoption.Clarification comes in the middle of speculation that UPI transactions can demand additional costs to maintain payment infrastructure. Reserve Bank of India also requested feedback related to the subject, in accordance with the discussion paper released on August 17.
Although this paper is not only related to UPI transactions, it includes other digital UPI Payments modes such as immediate payment services (IMPS), National Electronic Fund Transfer System (NEFT), and Gross Settlement System (RTGS).
This paper is looking for the government to look back at the zero-MDR (trader discount level) policy, which remains in the Rupay and UPI transactions. Through the costs charged on digital payments in the form of MDR, service providers argue that they can improve the system.
The Indian Payment Board (PCI), the Industrial Agency for the Digital UPI Payment Ecosystem in this country, has also written a letter to the government earlier this year, which before the presentation of the Uni 2022 budget, to return the zero-MDR regime for UPI Payments and Rupay debit cards.
At present, the visa and mastercard debit cards attract MDR (0.4 to 0.9 percent) distributed by the bank and the acquisition of the publisher.In connection with UPI, the RBI paper asks for feedback on whether it must be treated differently from the visa and Mastercard Debit. The government, in the tweet, said that they pushed digital payments that were “economical and user -friendly”.