RBI to Levy Charges on Digital Payments

 

by Suryaa |

Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday presented the Monetary Policy Committee (MPC)'s fourth bi-monthly monetary policy. Announcing the results of the meeting, Shaktikanta Das announced that interest rates would be stable. The repo rate was fixed at 4 percent and the reverse repo rate at 3.35 per cent. The Reserve Bank of India cut the repo rate by 0.75 per cent in March (2020) and 0.40 per cent in May. After a series of cuts, the repo rate fell to a record low of 4 percent.


RBI Governor Shaktikant Das provided a keynote address on digital payments. He said the Reserve Bank of India would issue a document on the charges levied on digital payments. Based on this, it is clear that we may have to pay extra for digital payments in the near future. The governor also announced that the RBI was preparing to launch UPI-based feature phone products.


Digital payments in India have grown rapidly since the demonetisation in 2016. During the coronavirus epidemic, the digital payments graph in the country reached its highest level. People relied on digital payments in an effort to prevent infection. Therefore, digital payments in India are constantly growing rapidly.


According to a report, other UPI platforms like Google Pay, Paytm, Phone-Pay , BHIM app transact around Rs 1.22 billion or Rs 122 crore every month. In 2016-17, there were 1,004 crore digital transactions. In 2020-2021, this number reached 5,554 crore. During the month of April-May 2021, digital transactions increased by more than 100 percent compared to 2020.

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