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NEW DELHI: The Ministry of Finance of the Union has advised all the banks do not charge any fees on proceedings or payments made through electronic modethe Central Board of Direct Taxes (CBDT) said in a statement Sunday.
According to the CBDT, some representations revealed that some banks are 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.
Therefore, he said that the ministry has advised banks to immediately reimburse the charges collected, if any, as of January 1, 2020, on transactions carried out using the electronic mode prescribed in section 269SU of the Law of IT and that they do not impose charges on any future transaction made through electronic mode.
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