The National Payments Corporation of India (NPCI) has ordered payment apps to stop charging platform fees for Bharat Bill Payment System (BBPS) payments. The NPCI directive comes days after the publication of a working paper by the Reserve Bank of India (RBI) regarding the accusations.
A report from India time said PhonePe, one of the largest UPI payment platforms in India, has started charging fees on certain recharges and other payments. In July, Paytm also started charging Rs 1 for various bill payments.
After the NPCI directive, Paytm announced that it no longer charged the fees to customers. PhonePe has also announced that it is stopping charging fees on the BBPS platform, the report adds.
Both companies said it was an experiment. PhonePe said the results of the experiment were “promising” and that 98% of consumers were willing to pay the fee.
The volume of transactions via BBPS has increased significantly over the past four months. In April, transactions worth Rs 11,324 crore took place through the platform. This jumped to Rs 16,218 crore in July. In May and June, the figure stood at Rs 13,824 crore and Rs 15,154 crore, respectively.
On the other hand, the volume of transactions fell from 74 million in April to 86 million in July, YOU reported further.
After the RBI working paper, the Ministry of Finance tweeted: “UPI is a digital public good with immense convenience for the public and productivity gains for the economy. The government has no plans to charge fees for UPI services. service providers for cost recovery must be satisfied by other means.”
In July, the number of UPI transactions crossed the 6 billion mark. Under UPI, BBPS allows online payment of various bills, including electricity and water.