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NPCI May Ask Banks Not to Charge for UPI Payments
June 15, 2017
Fearing that imposing fees on transactions may make the users move back to using cash instead of digital payments, the National Payments Corporation of India (NPCI) is planning to ask the banks to not charge the users for making payments via Unified Payment Interface. This is when two of the largest lenders in India State Bank of India and HDFC Bank have announced they will start charging for P2P payments from June and July respectively.
A senior banker from a private bank said that IMPS transactions attract a Rs. 2 fees, but for UPI transactions it’s 50 paise more because of the involved fintech player. However, some banks say they don’t have any plans for charging for UPI-based payments as they are already absorbing the costs of IMPS payments without any problems.
