A study published by IIT Bombay on the topic ‘Charges for PPI based UPI payments – The Deception’ states that around Rs 5,000 crore can be raised in 2023-24 with a fee of 0.3%.
Recently, there was a lot of confusion among the big users regarding the imposition of charges on UPI. However, after this, NPCI had made it clear that there is no intention to levy a charge on the payment of more than Rs 2,000.
But if the government accepts a recommendation of IIT Bombay, then it is possible that people will have to pay a uniform charge on all types of UPI payments. In fact, the government may impose a uniform digital payment facility fee of 0.3 per cent on transactions to fund the infrastructure required for the UPI payment system and to determine its financial strength. IIT Bombay has recommended this after a study.
5 thousand crores will come in the coffers of the government
A study published on the topic ‘Charges for PPI based UPI payments – The Deception’ states that around Rs 5,000 crore can be raised in 2023-24 with a fee of 0.3%. However, a study analyzing the impact of NPCI’s decision to impose interchange fee on payments made through mobile wallets states that no charge should be taken on payments received by merchants. Whether this amount comes directly through UPI or through prepaid e-wallet.
There is no charge on UPI payment
According to the existing law, the bank or any other UPI service provider cannot levy any fee directly or indirectly on the person making or receiving payment through UPI. However, on several occasions, banks and system providers have tried to interpret the UPI law in their own way.
UPI is growing rapidly
Finance Minister Nirmala Sitharaman said in her budget speech that the economy has become too formal. The membership of EPFO has more than doubled to 27 crores. In 2022, 7,400 crore digital payments worth Rs 126 lakh crore were received through UPI.
UPI will save printing cost
According to the written report of Ashish Das, the government and RBI are spending huge amount on currency printing and management. In the last few years, an average of Rs 5,400 crore has been spent on currency printing alone and an even more amount has been spent on currency management. The cost of UPI can be very low and the cost of currency can also be reduced by increasing its use. In such a situation, it has been suggested that some part of the savings should be used to further the UPI ecosystem by reducing the cost of cash.
