Do you have to pay charges on UPI transactions? Know what the government said

The Finance Ministry has said that the United Payment Interface (UPI) is a useful digital service for the people and the government is not contemplating to impose a fee on it. This statement of the ministry allays the apprehensions arising out of the discussion paper of the Reserve Bank of India (RBI) on charges in the payment system. It has been suggested in the discussion paper that charges may be levied on different amount categories on UPI payments.

As of now, there are no charges on transactions through UPI.

Finance Ministry clarified

The Finance Ministry said in a tweet that UPI is a useful service for the people, which brings great convenience to the people and increases the productivity of the economy. The government is not considering imposing any charges for UPI services. To recover the cost, the concerns of the service providers will have to be met through other means.

Let us tell you that there is a boom in UPI transactions in the country. Apart from cash and cards, people are transacting more through UPI. As a result, there have been 6 billion UPI transactions in the month of July itself. Prime Minister Narendra Modi himself gave this information. Praising UPI, the Prime Minister said that in July, 6 billion transactions were done through UPI, which is the highest since 2016. That is, UPI has achieved a new high in the month of July, breaking the record of the year 2016.

Government is giving incentives

Nirmala Sitharaman has also given this information, in response to which Prime Minister Narendra Modi said, this is an excellent achievement. It indicates the collective resolve of the people of India to adopt new technologies and make the economy clean. Digital payments became especially helpful during the COVID-19 pandemic.

Digital payment is more secure than other modes of transaction as it uses multi-factor authentication. Payment is made to the person in front only after verification, which protects the payment data and reduces the risk of cybercrime. Multi-factor authentication proves to be effective in protecting digital payments from cybercrime.