The central government has processed its position on reports claiming that it should levy further charges on UPI payments. during a series of tweets on Sunday, the Ministry of Finance same that UPI (Unified Payments Interface) could be a “digital public smart,” and there’s no thought to levy any charges for UPI services. The tweet additionally same that the value of recovery should be met through different means that, and therefore the government has provided backing for the digital payments system within the country. The ministry adscititious that it proclaimed help this year moreover to encourage any adoption of digital payments.
The clarification came amid speculations that UPI transactions could demand an extra charge so as to keep up the payments infrastructure. The bank of Republic of India had additionally sought-after feedback associated with the topic, as per a discussion paper free on August seventeen. though the paper didn’t solely relate to UPI transactions, it lined different digital payment modes like cash Service (IMPS), National Electronic Funds Transfer (NEFT) system, and Real Time Gross Settlement (RTGS) system.
The paper sought-after the govt to re-look at its zero-MDR (merchant discount rate) policy, that remains absent on RuPay and UPI transactions. Through the fee levied on digital payments within the variety of associate MDR, service suppliers argue that they will improve systems.
The Payments Council of Republic of India (PCI), the trade body for the digital payments system within the country, had additionally written to the govt earlier this year, that is before the presentation of the Union Budget 2022, to roll back the zero-MDR regime for UPI and Rupay debit cards. Currently, Visa and Mastercard debit cards attract MDR (0.4 to 0.9 per cent) that is shared by the establishment banks and acquirer.
In regards to UPI, RBI’s paper asked for feedback on whether or not it ought to be treated otherwise from Visa and Mastercard debit. the govt, within the tweet, same that it encourages digital payments that area unit “economical and user-friendly”.