After the Demonization on November 8, 2016, a wave of cashless economy raged in the country. There were so many digital payment mobile apps introduced in this wave. More likely Paytm got the most of the benefit through demonetization. After the popularity of these apps, the government also launched the Bhim App to with the dream to increase Digital transactions.
The government’s objective behind launching Bhim App was to clear up the expansion of fund transfer and promote the cashless economy.
Meanwhile, the central government also launched Unified Payment Interface (UPI) system. A special law was formed for this kind of payment system and all the banks were instructed.
According to the instructions, many banks launched their own UPI (Unified Payment Interface) app. The biggest advantage of this UPA service is that there is no charge in the fund transfer process.
But according to some media reports, this freedom is now about to end. The fee service will be charged for the UPI payment from July 10.
UPI Transaction Charges
- In fact, leading private sector bank HDFC has sent an e-mail to its customers, which said that from July 10, 2017, a minimal amount of money will be charged for the UPA payments.
- According to the e-mail, Rs. 3 will be deducted for transactions from 1 rupee to Rs. 25,000 service tax extra.
- There will be a charge of Rs 5 for fund transfers or transactions from Rs. 25,000 to Rs. 1 lakh.
- However, such banks have yet to send such mail.
What is UPI? How does it work?
The full name of the UPI is the Unified Payments Interface. This is a mobile app that launches different banks. Nearly all private and public bank’s UPI apps are available on the app stores. The advantage of this service is no one require account details to transfer money. Money can only be sent through the mobile number through the UPI. However, this is possible only if your bank account is linked to the Aadhaar number whoever want to send or receive money through UPI Application.