The Treasury Department announced on Sunday that UPI payment system will remain free of cost and the indian government is not considering of imposing any fee on it. Previously, the Modi-led union government would require users to pay for all UPI transactions. There have been rumors about whether or not to enact rules.
The Finance Ministry on sunday tweets that “UPI is a digital public good with immense convenience for the public and 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.
“The Govt had provided financial support for #DigitalPayment ecosystem last year and has announced the same this year as well to encourage further adoption of #DigitalPayments and promotion of payment platforms that are economical and user-friendly,” the ministry added.
Prime Minister Narendra Modi has previously hailed the success of Unified Payment Interface (UPI) transactions, which surpassed 6 billion in July, the highest since its launch in past six years .
According to the data released by National Payments Corporation of India (NPCI), UPI said in July reported their 6.28 billion transactions worth Rs 10.62 trillion and from June that increased by 7%.
“This is an outstanding accomplishment. It indicates the collective resolve of the people of India to embrace new technologies and make the economy cleanerr. Digital payments were particularly helpful during the COVID-19 pandemic,” Narendra Modi tweeted.
In FY2022, UPI processed over 46 billion transactions valued at over Rs 84.17 trillion, exceeding $1 trillion.
UPI’s goal is to process 1 billion transactions daily over the next five years. The UPI Facility was launched on 11 April 2016 by the then Governor of the Reserve Bank of India, Raghuram Rajan.