New Delhi: The BJP on Friday clarified that the proposed charges on Unified Payments Interface (UPI) transactions would not be imposed on ordinary users and would apply only to commercial transactions.
The clarification came a day after the Lok Sabha passed a Bill to amend the Payment and Settlement Systems Act, 2007, authorising the government to permit banks and other service providers to levy charges on payments made through UPI and other notified electronic payment modes.
Speaking to IANS, BJP MP Ashok Mittal said, “First of all, I would like to clarify that charges on UPI are not being imposed on the common man. They will only apply to commercial transactions. The charges on UPI will only be applicable to certain business-related transactions and not to ordinary users.”
BJP Bihar President Sanjay Saraogi also sought to allay concerns, saying the move would not place any burden on the general public.
“UPI has brought a digital revolution to India. Whether traders, street vendors or cart vendors, everyone has used UPI and contributed to the country’s growth. The law has only been enacted now. The extent of any charges and the manner in which they will be implemented will be decided later when the rules are framed. The RBI or the National Payments Corporation of India (NPCI) will have to take a decision on the matter,” he said.
Janata Dal (United) MLC Neeraj Kumar Singh defended the proposal, arguing that payment systems require sustainable business models to continue functioning effectively.
“If you want to make a transaction through UPI, what is wrong with paying a charge for it? If you have obtained a GST number for business purposes and want to carry out transactions, then you have to pay for the system. UPI was initially in an experimental stage and there were no charges. If a fee is introduced now, there should not be any issue because every business model has to be sustainable. The government is still providing significant relief to the people,” he told IANS.
However, the proposal drew criticism from the Opposition. BSP MLA Satish Kumar Singh Yadav said, “It seems that everything is being taxed now. Soon, the government may even impose a tax on speaking and listening. There are taxes on everything — eating, drinking, travelling and sleeping — and now even on UPI. It feels like every aspect of life is being brought under taxation.”
The amendment, passed by the Lok Sabha without discussion amid uproar, seeks to remove the existing legal provision that prevents banks and payment service providers from charging Merchant Discount Rate (MDR) on notified electronic payment modes.
The government’s approach aims to levy small charge on digital payment services for consumers and small businesses while ensuring a sustainable revenue model for banks, payment service providers (PSPs), and payment infrastructure firms that drive the digital payments ecosystem.
(IANS)
