The Ministry of Finance has clarified that the government is not considering any charges on UPI services. The concerns of the UPI (Unified Payment Interface) service providers for cost recovery would have to be met through other means. The ministry spokesperson stated that it is a digital public good with enormous utility for the people and productivity gains for the economy.

This clarification by the Ministry of Finance has come in the backdrop of RBI’s (Reserve Bank of India) decision to seek public feedback on UPI payments and charges. The Ministry cleared that RBI has not issued instructions pertaining to charges for UPI transactions so far. The government has mandated a zero-charge framework for UPI transactions, implying that UPI charges are nil for users and merchants alike.

The government has provided financial support for creating a robust digital payments ecosystem. It has announced the same this year to encourage further adoption of digital payments and promotion of user-friendly and economical payment platforms simultaneously.

On Wednesday, the RBI released a discussion paper and asked stakeholders if the merchant discount rate (MDR), a fee paid by merchants to acquiring banks, should be reintroduced for UPI transactions. The RBI discussion paper, which contains a set of 40 questions that seeks feedback on the fee structure for a range of digital payment services, is open for comments till October 3. As per RBI, the feedback received will be used to guide policies and intervention strategies.