Government, RBI need to share cost of maintaining UPI infrastructure
Business Sphere|September - October 2020
Government, RBI need to share cost of maintaining UPI infrastructure
The government and the Reserve Bank of India need to share the cost with banks associated with maintaining UPI infrastructure as it reduces the demand for cash and helps in curtailing expenditure on printing and managing currency notes, according to a report prepared by IIT-Bombay.

Observing that about Rs 5,000 crore is spent annually on printing cash alone and even more on managing it, the report said, The expenditure towards maintaining Unified Payment Interface (UPI) may be much lower and could even curtail the expenditure on cash.

The report further said UPI as a digital payments platform increases efficiency towards tax compliance, and provides overall convenience for public good.

With the government's vision of no direct or indirect charge on payments using UPI, an appropriate sharing of cost burden by the government and the RBI is called for (with UPI being the simplest alternative to cash in this era of mobile phones), the report added.

articleRead

You can read up to 3 premium stories before you subscribe to Magzter GOLD

Log in, if you are already a subscriber

GoldLogo

Get unlimited access to thousands of curated premium stories, newspapers and 5,000+ magazines

READ THE ENTIRE ISSUE

September - October 2020