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RBI releases discussion paper on charges in UPI for public feedback

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Kamal

Kamal

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RBI had released a discussion paper where they have asked for suggestions for UPI charges.
It is currently expected based on tiered based .

According to some suggestions-
“UPI as a funds transfer system is like IMPS. Therefore, it could be argued that the charges in UPI need to be similar to charges in IMPS for fund transfer transactions. A tiered charge could be imposed based on the different amount bands”

Press release-

Currently there are no charges in UPI for users and merchants.
For now it is only in suggestions phase and no one knows what will be bracket for the charges.

“Finance ministry has clearfied that no charges will be levied on UPI and it will remain free of cost”
 
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Kamal said:
RBI had released a discussion paper where they have asked for suggestions for UPI charges.
It is currently expected based on tiered based .

According to some suggestions-
“UPI as a funds transfer system is like IMPS. Therefore, it could be argued that the charges in UPI need to be similar to charges in IMPS for fund transfer transactions. A tiered charge could be imposed based on the different amount bands”

Press release-

Currently there are no charges in UPI for users and merchants.
For now it is only in suggestions phase and no one knows what will be bracket for the charges.
Click to expand...
Not a good idea 😕
 
It's sensible when high value transactions are processed. If they charge for every transaction, what difference does it make b/w IMPS and UPI.

I feel they'll introduce a cap based on the recipient involved. If it's a merchant, I am assuming the fees will be involved. And in the case of high-value transactions between individuals (say anything more than 10k), then that's where they may introduce a fee.
 
Rather than per transaction charge from customers, RBI can rather use a Debit card like Annual payment system to use UPI. Then, RBI can impose minimal charges to merchants for UPI transactions, much less compared to Debit Cards.
This way, everyone will keep using UPI as much as they do now or there will be little impact, but not huge.
Also, RBI should refrain from any such MDRs during the economic slowdown.
 
akshayhs said:
It's sensible when high value transactions are processed. If they charge for every transaction, what difference does it make b/w IMPS and UPI.

I feel they'll introduce a cap based on the recipient involved. If it's a merchant, I am assuming the fees will be involved. And in the case of high-value transactions between individuals (say anything more than 10k), then that's where they may introduce a fee.
Click to expand...
LOL, Most people dnt know how IMPS, UPI, CARD etc transactions work.

When I was a kid, People used to say that send minimum Rs10 through NEFT/RTGS because RBI pays Re1 per transaction cost but that thing is not happend now if you use UPI, IMPS payment.

When you use IMPS, UPI transactions, you see the money leave your account immediately and receiver or merchant receive it immediately but it takes few hours to maximum 2 days before they actually have the money in their bank accounts.

After few hours or next day NPCI deposits the money into the receiver or merchant’s account through RTGS payment. To make it even more complicated, much of the process is not done in real-time. It is done in batches.

Here you will see all settlement cycles timings for UPI and IMPS -

fytf.jpg

Card transactions also happen same way. payment will settle after few hours to maximum 2-3 days.
 
Abhishek012 said:
LOL, Most people dnt know how IMPS, UPI, CARD etc transactions work.

When I was a kid, People used to say that send minimum Rs10 through NEFT/RTGS because RBI pays Re1 per transaction cost but that thing is not happend now if you use UPI, IMPS payment.

When you use IMPS, UPI transactions, you see the money leave your account immediately and receiver or merchant receive it immediately but it takes few hours to maximum 2 days before they actually have the money in their bank accounts.

After few hours or next day NPCI deposits the money into the receiver or merchant’s account through RTGS payment. To make it even more complicated, much of the process is not done in real-time. It is done in batches.

Here you will see all settlement cycles timings for UPI and IMPS -

View attachment 3664

Card transactions also happen same way. payment will settle after few hours to maximum 2-3 days.
Click to expand...
I thought this is done only for Card or NEFT Settlement, not for UPI
 
If money is printed at a loss so should upi too work at a loss if it's trying to replace cash. They can also introduce BHIM wallet with wallet to wallet transfer charges being 0 which will cut out loss making aspects like banks and payment networks.
 
FAKE NEWS ALERT:

RBI is not considering charges on UPI transactions, nor any such thing is in the works. A paper was circulated last week which elaborated on changes in payment systems, and a question on this was MERELY ASKED for public feedback.
No policy change on the cards and UPI.

The RBI did not propose or hint at disposing of any policy, but merely put out some questions about different payment systems for public feedback.
 
Abhishek012 said:
FAKE NEWS ALERT:

RBI is not considering charges on UPI transactions, nor any such thing is in the works. A paper was circulated last week which elaborated on changes in payment systems, and a question on this was MERELY ASKED for public feedback.
No policy change on the cards and UPI.

The RBI did not propose or hint at disposing of any policy, but merely put out some questions about different payment systems for public feedback.
Click to expand...
Some random on the internet be like "It was a prank bro"
 
Abhishek012 said:
FAKE NEWS ALERT:

RBI is not considering charges on UPI transactions, nor any such thing is in the works. A paper was circulated last week which elaborated on changes in payment systems, and a question on this was MERELY ASKED for public feedback.
No policy change on the cards and UPI.

The RBI did not propose or hint at disposing of any policy, but merely put out some questions about different payment systems for public feedback.
Click to expand...
Such a relief
 
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Abhishek012 said:
FAKE NEWS ALERT:

RBI is not considering charges on UPI transactions, nor any such thing is in the works. A paper was circulated last week which elaborated on changes in payment systems, and a question on this was MERELY ASKED for public feedback.
No policy change on the cards and UPI.

The RBI did not propose or hint at disposing of any policy, but merely put out some questions about different payment systems for public feedback.
Click to expand...
Dil garden garden hogaya re!...😋🤑
 
Abhishek012 said:
FAKE NEWS ALERT:

RBI is not considering charges on UPI transactions, nor any such thing is in the works. A paper was circulated last week which elaborated on changes in payment systems, and a question on this was MERELY ASKED for public feedback.
No policy change on the cards and UPI.

The RBI did not propose or hint at disposing of any policy, but merely put out some questions about different payment systems for public feedback.
Click to expand...
Ask mod to change title
 
ashwink said:
Dil garden garden hogaya re!...😋🤑
Click to expand...
"UPI India" is Non-profit private company, indirectly owned by Indian govt.

Govt will not levy any charges for "UPI India" till company will not convert into For-profit company.

Note - Why i said "UPI India" ? because outside India, UPI is For-profit company. For example - "UPI Nepal" or any "UPI International" transactions charged MDR fees from merchants or "UPI Nepal" P2P/P2M transactions for Nepal citizens.

Also note - MDR fees is paid by merchants not customers.

IMG_20220821_205744_452.jpg
 
Abhishek012 said:
FAKE NEWS ALERT:

RBI is not considering charges on UPI transactions, nor any such thing is in the works. A paper was circulated last week which elaborated on changes in payment systems, and a question on this was MERELY ASKED for public feedback.
No policy change on the cards and UPI.

The RBI did not propose or hint at disposing of any policy, but merely put out some questions about different payment systems for public feedback.
Click to expand...
Good news.
 
change the title
from FAKE NEWS to NOT NOW
The media and other financial org run the news based on white paper, which they mentioned there will be a charges on UPI in future or thinking to how to do it.
so technically that's not fake news.
 
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