In the last few days, many reports claimed that the Indian government would start imposing extra charges on payments done through UPI(Unified Payments Interface)- the most widely used online payment system in India. The idea of imposing additional charges seemed to be huge disapproval by users however the Indian govt has cleared its point of view on the entire situation.
What is UPI?
UPI is a solitary stage that blends different financial administrations and highlights under one umbrella. A UPI ID and PIN are adequate to send and get cash. Ongoing bank-to-bank installments can be made utilizing a portable number or virtual installment address (UPI ID).
UPI allows bank account holders to carry out low-value payments up to Rs. 2 lac at a time. Unified Payments Interface(UPI) is a drive taken by the National Payments Corporation of India (NPCI) along with the Reserve Bank of India and the Indian Banks Association (IBA). NPCI is the firm that handles the RuPay installments framework, for example, Visa and MasterCard. It permits various banks to interconnect and move reserves. Prompt Payments Service (IMPS) is likewise a drive of NPCI. UPI is considered the high-level adaptation of IMPS.
UPI full form? क्या है UPI का Full Form
Full Form of UPI: Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood.
In reply, the Finance Ministry said that the government will be imposing no additional charges for the payments done via UPI.
“UPI is a digital public good with immense convenience for the public & productivity gains for the economy. 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 told in a tweet.
Currently, no charges are levied on digital payments done via UPI.
Charge on UPI: Now UPI will charge on Transaction
UPI exchanges in India have seen a gigantic development. As per a report by PTI, in Q1 2022, as far as volume there were over 14.55 billion UPI exchanges. As far as worth, UPI exchanges remained at walloping Rs 26.19 trillion. There has been a close to 100% growth rate as far as volume and 90% in esteem contrasted with 2021.
The RBI conversation paper given before this month expressed, that UPI as an asset move framework is like IMPS and hence, it very well may be contended that the charges in UPI should be like charges in IMPS for store move exchanges.
How do I get a UPI ID?
The insight about UPI installments being charged came in when the RBI delivered a conversation paper where it looked for criticism from partners on the possibility of an expense structure for different computerized installments, which included RBI. In the conversation paper, RBI had completely expressed, “RBI has not given directions in regards to charges for UPI exchanges.
The Government has commanded a zero-charge system for UPI exchanges with impact from January 1, 2020. This implies that charges in UPI are nothing for clients and shippers the same. Keeping in view that the aim of this conversation paper aims to evoke general criticism, a couple of inquiries on what approach ought to be taken on, have been incorporated.”
How to Add bank account in UPI?
The public authority has commanded a zero-charge structure for UPI exchanges with impact from January 1, 2020. This implies that charges in UPI are nothing for clients and shippers the same.
The Ministry of Finance in its tweet additionally clarified that it will keep on empowering the reception of digital transactions. “The Govt had provided financial support for the #DigitalPayment ecosystem last year and announced the same this year as well to encourage further adoption of #DigitalPayments and promotion of payment platforms that are economical and user-friendly,” the tweet reads.
UPI exchanges utilize an exceptionally secure encryption design that isn’t difficult to alter. NPCI’s IMPS network handles about Rs.8,000 crore worth of exchanges consistently. This is supposed to increment with UPI innovation dramatically. It utilizes a two-factor confirmation technique, like OTP, for checking each exchange. In any case, UPI PIN will be utilized in the spot of OTP for approval.
Where UPI is accepted?
Most of the merchants and shopkeepers in India accept payments done via UPI. Here are the platforms that accept UPI:
- used for paying electricity bills, mobile bills, shopping bills, restaurant bills, etc.
- You can likewise utilize it online in utility applications to make installments or set it as a default installment mode for installments.
- Online business goliaths have likewise begun giving UPI installment choices through the BHIM app(Bharat Interface for Money).
- You can likewise utilize this application to move money from one bank account of yours to the next.
- You can utilize this application to demand cash from others.