BHIM UPI payments have been the main that people make everyday payments to. Users can send and collect money quickly and reasonably simply from bank transfers to paying bills. Private banks will owe you money now, however, if you reach a limit of 20 purchases.
Private banks will now bill you for P2P at about Rs 2.5 to Rs 5 after each, as per the sitting on the banks’ official websites. However, the banks’ official websites show that “there are no charges on UPI for ‘Earned capital’ transactions.” That means your total monthly transaction is 70. Still, you’ve just made 20 deposits and the remaining 50 is the money you’ve got, you won’t be paid extra.
If they have crossed 20 UPI transactions, the official website of ICICI Bank, Axis Bank and Kotak Bank will charge a customer Rs 2.50 for transactions up to Rs 1000 and Rs 5 for transactions below Rs 1000. The official site of HDFC Bank shows that the bank will charge Rs 2.75 for transactions up to Rs 1000 and Rs 4.75 for transactions above Rs 1000 after the cap of 20 UPI transactions has been completed.
According to WorldProNews, the RBI spends about Rs 5,000 crore annually on printing currency, but as the world moves toward digital payments, the institution has some savings.
A research published by Ashish Das, an Indian Institute of Technology Bombay Professor of Statistics, sites the guidelines enforced by the Government through Section 10A which says, “10A. Notwithstanding anything contained in this Act, no bank or system provider shall charge anyone, directly or indirectly, for the use of the electronic payment methods prescribed by section 269SU of the Income Tax Act, 1961.”
Das also revealed that BHIM UPI transactions increased from 2019 to 2020, which is why banks are monitoring this transaction limit. As we all know, 2020 has been very difficult for the nation in economic terms. While people who switch to online payments have not only reduced the earnings received by private banks once a person used to do card transactions, it has also made money substantiation quite difficult. But Prof Das also brings to the attention what can be done at the same time to stop annoying private banks and customers.
He confirms that the government’s UPI transaction guidance by saying that “RBI and banks will bear these expenses from the benefits that will accrue to them when customers switch to these digital payment methods because of less cash handling.” This explains why the government has reportedly announced why RBI and banks should use the savings expense when people migrate to cashless transactions that minimise the need for further spending in cash printing.
