Representations had been made that some banks had been imposing expenses on UPI transactions.
The Ministry of Finance has suggested banks to not accumulate any expenses on transactions or funds made by means of digital mode, the Central Board of Direct Taxes (CBDT) mentioned in an announcement on Sunday. In accordance with the CBDT, representations had been made that some banks had been imposing and accumulating expenses on transactions carried out by means of UPI.
A sure variety of transactions had been allowed free by these banks past which each and every transaction bears a cost, the CBDT famous.
“That is in violation of the Round no 32/2019 dated December 30, 20219, which was issued by CBDT to make clear that primarily based on part 10A of (Fee and Settlement System (PSS) Act, any cost together with MDR (Service provider Low cost Charge) shall not be relevant on or after January 1, 2020 on funds made by means of digital modes,” the discharge mentioned.
The Ministry has suggested the banks to right away refund the costs collected, if any, on or after January 1, 2020, on transactions carried out utilizing digital mode prescribed below part 269SU of the IT Act and to not impose expenses on any future transactions carried by means of digital mode, the discharge added.
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