Promoting digital: Finmin puts lid on IMPS, UPI charges

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To promote digital and card payments, the Department of Financial Services in the Finance Ministry has issued fresh directions to public sector banks (PSBs) as regards Immediate Payment Service (IMPS) and Unified Payments Interface (UPI) related payments.

The Centre has directed the PSBs not to charge fees for transactions settled on IMPS and UPI in excess of rates charged for National Electronic Funds Transfer (NEFT) for transactions above Rs. 1,000, with service tax being charged at actuals.

For Unstructured Supplementary Service Data (USSD), transactions above Rs. 1,000, a further discount of 50 paise on these rates will apply, an official release said.

It may be recalled that the Centre –to promote payments through cards and digital means over payments in cash—had rationalised customer charges for transactions up to Rs. 1000 settled on IMPS, UPI and USSD with effect from January 1, 2017 till March 31,2017.

RBI had also rationalized the Merchant Discount Rate (MDR) for debit card transactions up to Rs. 2000/- with effect from January 1,2017 till March 31,2017.