Fees for UPI payments: Will fees also need to be paid for UPI payments? The NPCI CEO revealed the plans that are underway

Fees for UPI payments: Will fees also need to be paid for UPI payments? The NPCI CEO revealed the plans that are underway

Fees for UPI payments: Will fees also need to be paid for UPI payments? The NPCI CEO revealed the plans that are underway

Large merchants may have to pay fair costs for UPI-based payments in the next three years, according to Dilip Asbe, chairman of the National Payments Corporation of India (NPCI).

It's possible that fees could soon be applied to UPI payments made in the nation, however not everyone will be required to pay them. The body in charge of regulating and managing UPI, NPCI, is making plans in this area. Large merchants may have to pay acceptable costs for UPI-based payments in the next three years, according to remarks made on Thursday by Dilip Asbe, the chairman of the National Payments Corporation of India (NPCI).

What makes you possibly subject to payment fees?

During an occasion, the Managing Director and Chief Executive Officer of NPCI said that their present emphasis is on expanding the use of Unified Payment Interface (UPI) and offering a useful payment alternative to cash. But he also said that large sums of money would be required in the future for incentives like "cashback," more environmental awareness, and more innovation. According to him, an additional 50 crore individuals must be connected to the system.

"A fair charge will be charged in the long run," the NPCI director said at the Bombay Chartered Accountants Society function. Large traders will be responsible for this cost rather than minor traders. I'm not sure when this will be put into effect. This may occur one, two, or three years from now.

There's been a call for charging

UPI fees have always been a contentious topic. The industry is calling for the imposition of these fees. At the moment, the government pays environmental units for these kinds of transactions. This has aided in achieving the objective of digitization. Asbe also discussed raising the amount of money allocated to information security and cyber security from the existing 10% to 25% of the bank's IT (information technology) budget. He said that because there is still a danger, this spending has to be increased with caution.