Now enjoy Credit Cards payment with the UPI App. | Why IIT Bombay has suggested the government levy a charge on UPI payments?

 

Now enjoy Credit Cards payment with the UPI App.

 

The Reserve Bank of India i.e. RBI did not increase the repo rate in the first meeting of the Monetary Policy Committee for the financial year 2023-24. This means that the repo rate will remain at 6.50% only. In the meeting of the Monetary Policy Committee, RBI has taken many other big decisions. One of these is linked to the Unified Payments Interface i.e. UPI.

 

Now let's try to understand the whole news. Pre-sanction credit lines can be operated in banks through Unified Payments Interface i.e. UPI. Now, what is this line of credit? A line of credit is a predetermined amount of money that a financial institution such as a bank or credit union has agreed to lend to you.

 

If required, you can also withdraw money from the credit line up to the maximum amount. During this, interest also has to be paid on the borrowed amount. Now know what is the meaning of the pre-sanction credit line. When you get a pre-sanction for a credit line, it means that the bank has assessed the risk and believes that you can repay the fixed credit line on time.

 

Let us tell you, UPI has completely changed the way of retail payment in India. New products and features are being developed from time to time. Apart from this, permission has also been given in the MPC meeting to link RuPay Credit Card with UPI. Let us tell you, this new initiative of RBI i.e. operating pre-sanction credit lines in banks through UPI will also encourage innovation.

 

Now understand the maths of UPI from the figures. In March 2023, according to the data of the National Payments Corporation of India i.e. NPCI, 8.7 billion transactions were done with the help of UPI. What's more, it has seen a 60% growth in real-time payments on a year-on-year basis.

 

RBI Governor Shaktikanta Das also praised the UPI transactions, saying that payments through UPI have grown exponentially in the last 12 months and the average transaction per day has crossed 36 crores, which is a 50% increase from 24 crores in February 2022. Now know 10 big things of RBI MPC committee while going. 

The Reserve Bank of India did not make any changes in the interest rates. RBI kept the repo rate constant at 6.50%. MPC members took this decision unanimously. Interest rates will be decided further depending on the situation. Five out of six members were in favor of a return to an accommodative attitude. RBI believes that inflation is still higher than our target. 

The GDP forecast for FY24 has increased from 6.4% to 6.5%. The CPI inflation forecast for FY24 has been reduced from 5.3% to 5.2%. RBI said that it will continue to do liquidity management according to the needs of the economy. At the same time, RBI feels that the current account deficit can remain under control.

 

Why IIT Bombay has suggested the government levy a charge on UPI payments?

 

In the era of Digital India, the trend of an annual payment of UPI is increasing rapidly. That's why the government is keeping an eye on it. According to this, in the coming days, the common man may have to pay a charge on every UPI payment. That's why IIT Bombay has suggested the government charge on UPI payments. What is the full news? We are going to tell you this report.

 

IIT Bombay has suggested the government levy a charge on UPI payments. According to the suggestion of IIT Bombay, a charge of 0.3% can be levied on UPI payments. Now if the government follows the suggestion of IIT Bombay, then in the coming day people may have to pay a uniform charge on all types of UPI payments.

 

The government can impose a uniform digital payment facility fee of 0.3% on transactions to fund the infrastructure required for the UPI payment system and to determine its financial strength. Why has IIT Bombay made this suggestion? Charges for PPI Based UPI Payments, IIT Bombay's technical study said that about ₹ 5,000 crore can be raised in 2023-24 from 0.3 fees.

 

However, regarding the payment made through mobile wallet, it was said that no charge should be taken on the payment received by the shopkeepers. Whether this amount comes directly through UPI or prepaid E-wallet. This means that if it is implemented by the government, then a 0.3% charge means you will have to pay ₹ 3 on the payment of ₹ 1000. This means ₹ 3 will be deducted from your account.

 

A few days ago there was news that UPI payment charges would have to be paid, but it was not for general transactions. The National Payments Corporation of India (NPCI) said in a statement that there will be no charge for bank account-based payment or normal UPI payment from a bank account, but at the interchange for transactions through the pre-payment instrument of the seller. There will be a charge.

A charge of 1.1% will be levied on UPI transactions above ₹2,000 through UPI, but now talks are on to recover the charge. It can be heavy on the pocket of the common user because, in the coming days, this charge can be imposed directly on any online payment. Recently, Finance Minister Nirmala Sitharaman said in her budget speech that the economy has become too formal. 

Membership in EPFO ​​has increased more than doubling to 27 crores. 7400 crore digital payments worth ₹126,00,000 crore were received through UPI in 2022. The government is enthusiastic about digital payments and is preparing to target revenue. According to a report, the government and RBI are spending a huge amount on the printing and management of currency. 

An average of ₹5,400 crore was spent on currency printing alone and even more on the currency in the last few years. Expenses for UPI can be very low cost. By increasing its use, the expenditure on currency can also be reduced. In such a situation, it is suggested to use some part of the savings due to the reduction in the cost of money for furthering the UPI ecosystem. 

What is your opinion on the suggestion of IIT Bombay and the strategy of the government, tell us by commenting. How did you like our information? Please comment.