RBI may give a gradual blow, UPI fund transfer will also be charged

The Reserve Bank of India may soon allow charging on UPI BEST fund transfers as well. RBI is seriously considering this scheme to recover its operating expenses. Recently RBI has imposed interchange charge on debit cards, which has also made the use of debit cards costly.

RBI may give a gradual blow, UPI fund transfer will also be charged

The Reserve Bank of India may soon allow charging on UPI BEST fund transfers as well. RBI is seriously considering this scheme to recover its operating expenses. Recently, RBI had imposed interchange charge on debit cards, which has also made the use of debit cards expensive. The Reserve Bank of India has also sought suggestions from the public for this.

people’s suggestions

The central bank has issued a paper to discuss fees in payment systems and has sought public opinion on the subject. The paper states that RBI, as an operator, will have to bear the huge investment and operational cost of RTGS. Because it costs public money.

Also, the charges levied by RBI in Real Time Gross Settlement (RTGS) are not a means of earning. The cost of arranging digital transactions will be maintained by levying charges so that the facility continues uninterrupted.

RTGS and NEFT

Apart from UPI based transactions, payment is also done through RTGS and NEFT. There are charges on these payments. RTGS is mainly used for large transactions. It is mainly used by banks and large institutions/merchants. The paper asked whether RBI should provide free transactions for such a system in which entities are involved as members.

RBI says that RBI does not get profit in the operation of NEFT. But the recovery of the cost may be justified.

As this paper asks

A paper released by RBI asked whether such infrastructure is considered a public good and digitization of payments is called a service, is it not justified to charge? RBI is regulating the paper instant payment service

Also read: Now UPI payment will also be done by credit card, RBI has given big relief to the users