Statements were made that some banks were imposing fees on UPI transactions.
The Finance Ministry has advised banks not to charge any fees for transactions or payments made via electronic mode, the Central Board of Direct Taxes (CBDT) said in a statement on Sunday. According to the CBDT, statements were made that some banks were imposing and collecting fees on transactions made through UPI.
These banks allowed a certain number of transactions, beyond which each transaction carries a fee, the CBDT noted.
“This violates Circular No. 32/2019 of December 30, 20219, which was issued by CBDT to clarify that, based on section 10A of the (Payment and Settlement System Act (PSS), any charge included The MDR (Commercial Discount Rate) will not be applicable as of January 1, 2020 in payments made through electronic modes, “the statement said.
The Ministry has advised banks to immediately reimburse the charges charged, if any, as of January 1, 2020, on transactions carried out using the electronic mode prescribed in section 269SU of the IT Law and not to impose charges on any future transactions carried out electronically, the statement added.
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