Finance Ministry refutes plans to levy charges on UPI transactions

After multiple reports emerged of possible levy on Unified Payments Interface (UPI) transactions in the wake of a Reserve Bank of India (RBI) report, India's Finance Ministry has tweeted a clarification saying there will be no levy on the service.

"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 Ministry of Finance tweeted.

In a discussion paper issued earlier this month, the RBI said that UPI is a fund transfer system similar to IMPS and could therefore be charged.

"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," another tweet from the Ministry said.