The central government has clarified its position on reports claiming that it may levy additional charges on UPI payments. In a series of tweets on Sunday, the Ministry of Finance said that UPI (Unified Payments Interface) is a "digital public good," and there is no consideration to levy any charges for UPI services. The tweet also said that the cost of recovery has to be met through other means, and the government has provided financial support for the digital payments ecosystem in the country. The ministry added that it announced assistance this year as well to encourage further adoption of digital payments.
The clarification came amid speculations that UPI transactions may demand an additional charge in order to maintain the payments infrastructure. The Reserve Bank of India had also sought feedback related to the subject, as per a discussion paper released on August 17. Although the paper did not only relate to UPI transactions, it covered other digital payment modes such as Immediate Payment Service (IMPS), National Electronic Funds Transfer (NEFT) system, and Real Time Gross Settlement (RTGS) system. The government has mandated a zero-charge framework for UPI transactions with effect from January 1, 2020. This means that charges in UPI are nil for users and merchants alike.