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. Chief Executive Officer (CEO) and Managing Director of NPCI said at an event here that currently our entire focus is on providing a practical payment alternative to cash and increasing the acceptance of Unified Payment Interface (UPI).
No information on when the charges will be implemented
Dilip Asbe said that, however, a lot of money will be needed in the future for more innovation, connecting more people to the environment and incentives like cashback. He said that there is a need to connect another 50 crore people with the system. NPCI chief said at the event of Bombay Chartered Accountants Society, a reasonable fee will be imposed from a long term perspective. 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.
Fees on UPI a controversial issue
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.