An enormous demonetization drive by the Government was not only intended at pulling out the accumulated black money but was also pressed for a cashless economy. This encouraged them to initialize the payment collection system with the introduction of an extremely simplified proposal, known as Unified Payments Interface (UPI). It enables the user to directly transfer money between 2 bank accounts with the use of just a mobile app.
The Modi government is deemed to be the most tech-friendly and tech-savvy until date. And it is following the footsteps of other firms as well and thus, has introduced its own UPI-dependent payment app, BHIM. Apart from this, several private and public banks have also accepted the open-source technology and either incorporated UPI into their own apps or rolled out separate apps for the same.
These UPI apps have assisted the population of the country to move toward a cashless economy. This has left the plastic and credit cards behind, as the new method is absolutely convenient and does not charge any transaction such as IMPS or NEFT does. However, there is a twist now and soon even the UPI transactions are anticipated to become chargeable since the coming month.
As per the email received by few HDFC customers, the bank says that it will start applying a levy on the UPI transactions. The change is expected to be implemented from July 10. A fee of Rs 3 plus taxes will be charged for a transaction from Rs 1 to Rs. 25,000, whereas the user will be charged Rs 5 plus taxes on a transaction of Rs. 25,001 to Rs. 100,000.
No such statement is released by any other bank except HDFC for now. HDFC has already sent a notification regarding this to its all customers. So the question here is, “Is only HDFC seeking to charge the transactions or has NPCI initiated the minor transform in their rules.” There is nothing to worry about it right now. We will surely be notified once an official statement is released.
What people should take note of is that “nothing can be always accessible free of cost.” The implementation of point-of-sale systems and similar technologies need costing. And this may be a way to pull out the same through charging the transactions.