The Finance Ministry has now clarified whether there will be any fees for making UPI Payment Charges. The Finance Ministry stated on Sunday that the United Payments Interface (UPI) is a digital public commodity and that the government has no plans to tax it. In fact, the RBI issued a consultation paper on payment systems a few days ago, soliciting feedback from various stakeholders. Following this, there was increased speculation that the central government might levy fees on UPI payment systems such as Google Pay, Paytm, and PhonePe.
Finance Ministry tweeted
Currently, there are no fees associated with UPI transactions. ‘UPI has brought great benefits to the economy,’ said the Finance Ministry in a tweet. The government has no plans to impose a tax on payments made through it. In terms of the costs involved in the transaction, the service providers’ concerns will be addressed in another way.
This was the RBI’s recommendation
The RBI has treated fund transfers via UPI on par with IMPS in its consultation paper, so it is argued that the same fees should be levied for fund transfers via UPI as are levied for IMPS.
Finance Ministry says it will boost digital payments even more
In another tweet, the Finance Ministry said, “Government provided financial assistance to promote digital payments last year and has announced to encourage such payment platforms this year also.” The government has made zero charge framework mandatory for UPI transactions with effect from January 1, 2020. This means that there is no charge on the users and merchants in UPI.