By ANI

NEW DELHI: Union Finance Minister Nirmala Sitharaman said on Friday that the central government felt it was not the right time to make digital payments billable.

Speaking at an event, Sitharaman said, “We see digital payment as a public good. People should be able to access it freely so that digitalization of Indian economy becomes attractive. Through digitalization too, we achieve a level of transparency that is so mandatory.”

“Therefore, we still believe that now is not the right time to make it pay. We are pushing more and more towards open digital transactions, digitization and platforms that can enable wide access. The recommendation of the RBI is to write a working paper and leave the working paper where it is,” the minister added.

Sitharaman’s statement came amid the Reserve Bank of India (RBI) seeking public comment on various proposed changes to the payments system, including the possibility of imposing tiered fees on transactions made through the unified payment interface (UPI).

However, the Indian government announced last week that it will not levy any fees on UPI (Unified Payments Interface) services.

As announced in the Development and Regulatory Policy Statement dated December 8, 2021, the Reserve Bank of India (RBI) has released a discussion paper on “Fees in Payments Systems” for public comment, RBI said in a statement. The working document was released on August 17.

READ ALSO | “Market forces should set the fees for digital payments,” experts say

The goal of RBI initiatives in payment systems has been to mitigate friction that can arise from systemic, procedural, or revenue-related issues. Although there are many intermediaries in the payment transaction chain, consumer complaints are usually about high and non-transparent fees.

Fees for payment services should be reasonable and competitively determined for users while ensuring an optimal revenue stream for intermediaries. To ensure this balance, it was deemed useful to carry out a comprehensive review of the different fees levied in payment systems by highlighting different dimensions and soliciting feedback from stakeholders.

In India, the RTGS and NEFT payment systems are owned and operated by RBI. Systems like IMPS, RuPay, UPI, etc. are owned and operated by the National Payments Corporation of India (NPCI), which is a non-profit entity promoted by banks. Other entities such as card networks, PPI issuers, etc., are private for-profit entities.

Notably, the number of digital transactions in July was the highest on record since 2016. UPI reported 6.28 billion transactions amounting to 10.62 trillion rupees, according to data released by the National Payments Corporation of India ( NPCI).

NEW DELHI: Union Finance Minister Nirmala Sitharaman said on Friday that the central government felt it was not the right time to make digital payments chargeable. Speaking at an event, Sitharaman said, “We see digital payment as a public good. People should be able to access it freely so that digitalization of Indian economy becomes attractive. Through digitalization too, we achieve a level of transparency that is so mandatory.” “Therefore, we still believe that now is not the right time to make it pay. We are pushing more and more towards open digital transactions, digitization and platforms that can enable wide access. The recommendation of the RBI is to write a working paper and leave the working paper where it is,” the minister added.Sitharaman’s statement came amid the Reserve Bank of India (RBI) seeking public comment about the various proposed changes in the payment system, including the possibility of imposing tiered fees on transactions made through the Unified Payments Interface (UPI).However, the Indian government announced last week that it will not would levy no fees on UPI (Unified Payments Interface) services.As announced in the Development and Regulatory Policy Statement dated December 8, 2021, the Reserve Bank of I ndia (RBI) has released a discussion paper on “Fees in Payment Systems” for public comment, RBI said in a statement. The working document was released on August 17. READ ALSO | ‘Market forces should set digital payment fees,’ experts say The goal of RBI’s initiatives in payment systems has been to alleviate friction that can arise from systemic, procedural or revenue-related issues. Although there are many intermediaries in the payment transaction chain, consumer complaints are usually about high and non-transparent fees. Fees for payment services should be reasonable and competitively determined for users while ensuring an optimal revenue stream for intermediaries. To ensure this balance, it was deemed useful to carry out a comprehensive review of the different fees levied in payment systems by highlighting different dimensions and soliciting feedback from stakeholders. In India, the RTGS and NEFT payment systems are owned and operated by RBI. Systems like IMPS, RuPay, UPI, etc. are owned and operated by the National Payments Corporation of India (NPCI), which is a non-profit entity promoted by banks. Other entities such as card networks, PPI issuers, etc., are private for-profit entities. Notably, the number of digital transactions in July was the highest on record since 2016. UPI reported 6.28 billion transactions amounting to 10.62 trillion rupees, according to data released by the National Payments Corporation of India ( NPCI).