UPI Payment: Under the current law, no provider operating the bank or UPI can directly impose a fee on the person making or receiving the payment or receiving through UPI.
UPI Payment: The government can consider imposing a 0.3% uniform digital payment facility fee on such transactions to ensure the funding of infrastructure required for the UPI payment system and its financial strength. Indian Institute of Technology (IIT)-Bombay suggested this in a study
The study published under the title ‘Charges for PPI based UPI Payments- The DeStion’ said that about Rs 5,000 crore can be raised in 2023-24 from the 0.3% facility fee.
No charge on payment received by shopkeepers
The study, analyzing the effects of the decision of the National Payment Corporation of India (NPCI) to impose interchange fees on payment through mobile wallets, says that there should be no fee on payment received by shopkeepers, even if it is directly UPI Come through or through prepaid e-wallet.
Read Also- Tech is the Way to Your Lover’s Heart this Valentine’s Day!
NPCI has launched a provision of deducting an ‘interchange’ fee of 1.1% of the payment amount from April 1, 2023, on payment to shopkeepers through UPI. These prepaid wallet-based UPI transactions will be applicable.
Under the current law, no provider operating the bank or UPI can be directly or indirectly impose a fee on the person making or receiving through UPI. However, on several occasions, banks and system providers have tried to interpret the UPI law at their convenience.
Finance Minister Nirmala Sitharaman said in her budget speech, the economy has become a lot of formal as the membership of EPFO has increased to 27 crores and 7,400 crore rupees of Rs 126 lakh crore through UPI in 2022. Digital payments have been made.
According to the report written by Ashish Das, the government and RBI are carrying significant costs in the printing and management of currency. In the last few years, he has spent an average of Rs 5,400 crore on currency printing alone and more on currency management.
The expenditure for UPI can be very low and can also reduce the expenditure on the currency. The reduction in the burden of cash-liquor should be partially channelized to pursue the UPI ecosystem.
