Will there be UPI charges on every payment? What finance ministry says?
What is UPI?
UPI aka United Payment Interface is an authentic system that powers a single bank account or multiple bank accounts into a mobile app merging different banking features, merchant payments, fund routing into one hood. Most of the banks of India have started to upload their UPI enabled Apps on Gplay store from August, 2016. UPI is the best answer to COD (Cash on Delivery) hassle. There was no UPI charges back in 2016.
How to use:-
To use UPI system one must download any kind of money transferring app from Google pay store. You can download Phonepe, Google pay, Paytm, Amazon pay, Bhim pay from Google play store. Then you have to link your bank account / bank accounts to the apps.
In 17th Aug, 2021, Reserve Bank of India aka RBI asked for feedback on a discussion paper titled. The paper was made public in December 2021. It caused a terrible confusion among the citizens of India regarding extra UPI charges. There was a confusion between them about UPI charges.
Earlier, the finance minister of India, Mrs. Nirmala Sitharaman has announced from her official twitter account that currently, there are no charges levied on UPI transactions. She said, “UPI is a digital public good with immense convenience for the public & productivity gains for the economy. There is no consideration in Govt to levy any charges for UPI services. The concerns of the service providers for cost recovery have to be met through other means”. Her confirmation has cleared the fact about “no UPI charges”.
The govt. of India has mandated a zero-charge framework for UPI transactions with effect from January 1, 2020. There are reports that 10.62 trillions of money has been transacted via UPI. Keep visiting our website to stay updated for more.
Written by Tritiyaa.