Finance minister Nirmala Sitharaman has reiterated that the government has no plans to impose any levy on digital transactions, adding that these facilities are a public good.
The finance ministry had recently clarified that there are no plans to levy any charges on UPI. The UPI has a zero charge framework from January 1, 2020. The ministry had said that the cost borne by providers will have to be recovered through other means. The finance minister’s comments further clear the government’s stand on the issue.
Speaking at an event in Mumbai, Sitharaman said that the government sees digital payments as a public good and that people should be able to access these facilities freely.
“We see digital payments as a public good. People should be able to access these facilities freely, so that the digitisation of the Indian economy becomes attractive to them. We intend to achieve a higher level of transparency through digitisation. Therefore, we do think it’s not yet time for charging for UPI services,” she said.
Last week, a discussion paper put out by the Reserve Bank of India sought suggestions on whether charges should be levied on transactions through UPI and other payment systems and interchange fees on cards.
The Centre will continue to provide support to the digital ecosystem this year also to encourage further adoption of the digital economy, the finance ministry said, setting clear the government’s thinking on the issue.
On the issue of freebies, which has been a hot topic for some time after the Supreme Court said that a balance must be maintained between welfare measures and freebies, Sitharaman said there is a need for a rigorous debate on the freebies side.
She, however, stressed that political parties making pre-poll promises should make budgetary provisions for taking care of the expenditures and not push the burden on other entities.
