Transfer of funds from UPI can be costly, RBI may take a decision soon on levying charges
According to the Reserve Bank, to transfer funds without risk, infrastructure needs to be created with huge expenditure. At the same time, money is also necessary to run them.
Transfer of funds from UPI can be costly
Transferring funds through UPI may become costly in the coming times. Actually Reserve Bank of India UPI based fund transfer may levy charges. Actually, the Reserve Bank is considering this scheme to remove the cost of fund transfer. The Reserve Bank has issued the Discussion Paper on Charges in Payment System and has sought advice from the people regarding the charges.
Decision possible for recovery of cost
The Reserve Bank has said in this paper that as an operator, the Reserve Bank has to compensate for the large investment and operating cost in RTGS. According to the bank, public money has been invested in this, such cost is necessary to be removed. At the same time, the Reserve Bank made it clear that the charges levied in Real Time Gross Settlement ie RTGS are not a means of earning. Rather, the cost of the system will be deducted from this fee so that this facility can continue without any interruption. It has been clearly asked in the paper whether it is okay to not charge for such services. According to the Reserve Bank, the bank does not see the benefit in the service, but it is appropriate to recover the cost of the service.
What is the rationale of the Reserve Bank for the fee
According to the paper, UPI ensures real time transfer of money. At the same time, it also ensures real time settlement. According to the central bank, infrastructure needs to be created to ensure this settlement and fund transfer without any risk. Which costs a lot. According to the Reserve Bank, such a question arises that in the event of free service, who will bear the huge cost of preparing and implementing such an expensive infrastructure.