In its efforts to promote cashless economy, National Payments Corporation of India (NPCI) is planning to direct banks not to levy any charge for transactions made through the Unified Payments Interface (UPI).
“So far, no bank is charging for UPI transactions but at the same time, it is at their discretion to levy a reasonable fee towards person-to-person (P2P) transactions for UPI and IMPS (Immediate Payment Service). However, person-to-merchant (P2M) transactions in UPI will remain free to customers as per NPCI guidelines,” said Dilip Asbe, Chief Operating Officer, NPCI.
Demonetisation was initiated to boost the usage of digital payments. NPCI being the nodal agency for digital payments in the country is promoting this initiative.
However, private lender HDFC Bank has recently notified its customers through an email that UPI-based payments up to Rs 25,000 will be charged Rs 3 plus service tax and above Rs 25,000 to Rs 1 lakh will be charged Rs 5 along with taxes.