Merchant service providers charge for UPI and Rupay

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Merchant service providers charge for UPI and Rupay

Most of the payment gateway merchant providers continue to charge for providing and enabling United Payment Interface and Rupay in spite of the notification released by the government citing that to be illegitimate. 

As there is no way for the bankers to reimburse the ones who provide with the payment infrastructure so they are the ones who are condemning the move. In 2019 there was a notification released by the government citing the imposition of fee as illegal on the Rupay debit cards and the UPI electronic modes of payment. 

The Central Board of Direct Taxes had directed a formal notice to the payment service providers on their stand with respect to the Rupay and UPI transactions which came after the board had issued an order directing the banks to reimburse any fee that they had collected for availing the payments using Rupay debit cards or UPI transactions.

Most of the banks were fairly questionable on the move of the ban of the fees as it would just curtail and slow down merchant accession while on the other hand Paytm had used this as a chance to encourage the merchants to impend them on their network. It was also confirmed that Paytm does not impose any merchants for easing UPI and credit card payments online.

There has been persudance by the banks with the Budget around to elevate the ban on the charges. The National Payments Corporation of India has also been in favour of the forbid on the charges being lifted. Dilip Asbe, MD and CEO of NPCI was commented as saying ” The broker fees are needed because it pools the acquiring, servicing and acceptance of framework for UPI in the country”.

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