Insta
CBDT Asks Banks To Return To Customers Any Fees Levied On UPI Transactions Since 1 January 2020
The Unified Payments Interface (UPI) channel has been reported to have grown the fastest among all modes of retail digital payments
In a major bid to push the adoption of digital payments, particularly Unified Payment Interface (UPI), in India, the Central Board of Direct Taxes (CBDT) on Monday (31 August) asked the banks to return to the customers and merchants any fees levied for making UPI transactions in 2020, reports Economic Times.
Asserting that imposition of such charges on UPI transactions violated the law of the land, CBDT asked the banks to stop the imposition of all such charges or face "penal actions" under Section 271 DS of the IT Act, as well as Section 26 of the PSS Act.
The CBDT's crackdown comes, as last year on 30 December, the Board had clarified that any charge, including merchant discount rate (MDR) would not be applicable on or after 1 January 2020 on the payments made through electronic modes.
