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HomeFinanceCharges on UPI Transaction, RBI has started the process to make rules

Charges on UPI Transaction, RBI has started the process to make rules

Charges on UPI Transaction: In today’s time almost people are doing UPI Transaction in urban areas. Its numbers have started increasing even in rural areas. India has joined the list of the country with the most digital payments. People who are always making digital payments. Thinking that there is no charge to be paid. There is bad news for them. Actually, the RBI has started working on the process of levying charges on the payment.

Charges on UPI Transaction

In a tweet on Wednesday, the RBI has sought the opinion of the public regarding the imposition of the fee. Any citizen can send his/her idea by filling the form till 3rd October 2022 or to the official mail address of RBI. If you also want to say something on this topic then you can click on this link.

The discussion paper released by RBI covers all the fees related to payment systems such as Immediate Payment Service (IMPS), National Electronic Funds Transfer (NEFT), Real Time Gross Settlement (RTGS) system and Unified Payments Interface (UPI) and various payment instruments. aspects have been incorporated. Also, the RBI has said that the feedback received in the form of debit cards, credit cards and prepaid payment instruments (PPIs) will be used in making policies.

Large number of Smartphone users Charges on UPI Transaction

Large number of Smartphone users

India has a huge mobile phone user base of around 120 crores and out of them around 750 million people have smartphones. There are about 450 million feature phone users. Those who give preference to UPI payments. According to the data of National Payments Corporation of India, 338 banks are working on the UPI system and the number of users transacted was 6388 million. About 50 percent of the transactions are happening through UPI for an amount less than Rs 200.

Charges on UPI Transaction

RBI had issued an order even after giving instant loans

RBI had issued an order even after giving instant loans

Reserve Bank of India (RBI) had recently issued strict norms for digital lending. Under this, the central bank said that digital loans should be credited directly into the bank accounts of borrowers and not through any third party. The RBI said that the fee payable to loan service providers (LSPs) in the credit intermediation process should be paid to digital lending institutions and not to the borrowers. While issuing detailed guidelines for digital lending, the RBI mainly mentioned concerns related to unbridled third party affiliations, mis-selling, data privacy violations, unfair business practices, exorbitant interest rates and unethical recovery practices.

RBI had constituted a working group on ‘Digital Lending including Lending through Online Platforms and Mobile Applications’ (WGDL) on January 13, 2021.


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