National Payments Corporation of India (NPCI) chief Dilip Asbe said that large merchants may have to pay reasonable fees for UPI-based payments in the next three years.
Soon, fees may be imposed on UPI payment in the country, although not everyone will have to pay this fee. NPCI, the organization that oversees the operation and regulation of UPI, is planning regarding this. National Payments Corporation of India (NPCI) chief Dilip Asbe said on Thursday that large merchants may have to pay reasonable fees for UPI-based payments in the next three years.
Why may you have to pay fees on payment?
Chief Executive Officer (CEO) and Managing Director of NPCI said at an event that currently our entire focus is on providing a practical payment alternative to cash and increasing the acceptance of Unified Payment Interface (UPI). However, he said that in the future, a lot of money will be needed for more innovation, connecting more people with the environment and incentives like ‘cashback’. He said that there is a need to connect another 50 crore people with the system.
“From a long-term perspective, a reasonable fee will be imposed,” the NPCI chief said at the Bombay Chartered Accountants Society event. This fee will not be charged from small traders but from big traders. I don’t know when this will be implemented. This could happen after one year, two years, or three years.
There has been a demand to impose fees
Fees on UPI have been a controversial issue. There is a demand from the industry to impose such charges. Currently the government compensates units in the environment for such transactions. This has helped in moving forward as per the goal of digitalization. Along with this, Asbe also talked about increasing the expenditure on cyber security and information security from the current 10 percent to 25 percent of the bank’s IT (Information Technology) budget. He said that the risk remains, there is a need to increase this expenditure while being cautious.
