Its time to say bye-bye to free UPI transfers. Axis Bank is charging 5 rs per transaction if you have done 20 transactions per month. The regulated government of India has made his grounds over making the supply of state services electronically. The improved online infrastructure and by extending Internet connectivity has eased the work of citizen. In 25 years, there are many advanced changes in India, it’s leading the digital revolution. The extent of poverty in India has been a drop from 22% in 2012 to 16% in 2019, even after the essential growth in population. Such an example is demonetization, it’s gained global attention has been related to short-term job losses and economic slowdown. However, it also shows compliance for state leadership to drive India’s digital transformation.
Looking into the factors of the digital revolution from 2014, India has grown to another level of grounds, our government of India has taken various Digital Initiatives like e- payment, digital literacy and lots of more. Bharat Interface for Money-Unified Payment Interface (BHIM UPI), with over 600 million sales 2019 alone, is that the courage combining all banks and consumers and is being front-ended by many national and international digital programs. Paytm, Google Pay, Amazon pay, etc. all are setting their levels within the world of digitalization.
After 20 free transactions, Axis Bank will impose Rs 2.5 per transaction but or adequate to Rs 1,000 and Rs 5 per transaction quite or sufficient to Rs 10,000. Additionally, a GST at 18% is going to apply to these transactions. These charges, however, don’t apply to Axis Priority, Axis Burgundy, and Axis Burgundy Private scheme codes.
Payment service provider fees are the digital payments primary monetization route for banks and UPI apps. Unified Payments Interface or UPI is a moment real-time payment system developed by the National Payments Corporation of India (NPCI) to ease inter-bank transactions. It’s become the backbone of India’s digital payments industry. The interface is regulated by the Federal Reserve Bank of India (RBI). UPI was launched in 2016, just a couple of months before the demonetization.
UPI is employed by many as they will easily send and receive money from a lover or a loved one. With numerous UPI providers, with more and new cash backs and scratch cards and discounts, there has been an increase of UPI use like no other mode of payment. It’s so widely used that it’s the foremost preferred payment mode for a greater extent of P2P (Person to Person) transactions.
These additional charges will benefit the banks by earning more revenue by easing UPI transactions on their banking platform either through their app or through e-wallet apps like Google Pay, PhonePe, or Paytm. Currently, neither the banks or these third-party apps charge the users so on keep the demand high.
According to NPCI, February 2020 saw an increase within the number of monthly transactions to 1.32 billion. The entire yearly UPI transactions for 2019 were 10.87, which was 1.87 times year-on-year growth. But thanks to these additional charges, these numbers might fall drastically.