Big Story | Banks asked to refund charges collected on UPI, RuPay transactions; more burden on banks?

To boost the digital payments landscape in the country, the Central Board of Direct Taxes (CBDT) has asked banks to refund the charges collected on or after January 1 on transactions carried out through electronic modes like RuPay cards or BHIM-UPI.

Private banks such as ICICI Bank, Axis Bank, Kotak Mahindra Bank and HDFC Bank recently began charging customers for UPI transactions beyond a prescribed limit.

And given the surge in transaction volumes amid the COVID-19 pandemic, what processing refunds and no transaction fee in the future could mean for banks? Also, does this mean consumers can expect a refund of transaction charges paid?

Moneycontrol's Sakshi Batra answers all these questions in this edition of Big Story.