New Delhi: Nirmala Sitharaman, the minister of finance, has stated once more that there are no intentions for the government to impose any fees on digital transactions and that these services are a public good.
There are now no plans to impose any fees on UPI, according to recent clarification from the finance ministry. Beginning January 1, 2020, the UPI will operate under a zero-fee structure. The ministry had previously stated that providers would need to find other ways to recoup their costs. The government’s position on the matter is made much clearer by the finance minister’s remarks.
At a Mumbai event, Sitharaman stated that the government views digital payments as a public utility and that individuals should have unrestricted access to these services.
“We see digital payments as a public good. People should be able to access these facilities freely, so that the digitisation of the Indian economy becomes attractive to them. We intend to achieve a higher level of transparency through digitisation. Therefore, we do think it’s not yet time for charging for UPI services,” she said.
In a discussion paper published last week, the Reserve Bank of India requested opinions on whether fees for transactions made through UPI and other payment systems, as well as interchange fees for card transactions, should be imposed.
The finance ministry stated that the Center will continue to support the digital ecosystem this year in order to promote greater adoption of the digital economy and to make the government’s position on the matter known.
Sitharaman stated that there needs to be a thorough discussion on the problem of freebies, which has been a heated topic for some time because the Supreme Court stated that a balance between welfare measures and freebies must be maintained.
She emphasised that political parties making pre-election promises should make budgetary arrangements for covering the costs and avoid placing the weight on other organisations.
