There has been a tremendous growth in UPI transactions in India. According to a report, in Q1 2022, there were over 14.55 billion UPI transactions. In value terms, the UPI transaction was worth Rs 26.19 trillion. There is an increase of 99% in terms of volume and 90% in price compared to 2021.
The news of the imposition of charges on UPI payments came after the RBI released a paper seeking feedback on the fee structure for various digital payments. RBI was also involved in this process. RBI had categorically stated, “RBI has not issued instructions to charge fees for UPI transactions. The government has made zero-charge framework mandatory for UPI transactions with effect from January 1, 2020. This means that no one will have to pay any charges for making UPI payments. In the paper which was released, only normal reactions were sought, in which there were some questions and views were sought on it.
The Finance Ministry clarified in its tweet that it will continue to encourage the adoption of digital payments. “The government provided financial support for the #DigitalPayment ecosystem last year and this year also announced to promote the adoption of #DigitalPayments and make it cost-effective and user-friendly.”
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