InvestorQ : Is it true that the banks will be refunding all UPI and IMPS charges since January 2020 back to customers?
NISHA Nayak made post

Is it true that the banks will be refunding all UPI and IMPS charges since January 2020 back to customers?

Answer
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Priyanka N answered.
3 weeks ago


Over the weekend, the Income Tax Department instructed all the Indian banks to refund charges levied on customers pertaining to UPI transactions and RuPay transactions effective January 01, 2020. However, this does not apply to any IMPS charges levied by banks.

It may be recollected that the government had inserted a special provision under Section 269U which makes UPI and RuPay transactions free of transaction cost. It looks like the banks have not been adhering to the directive about not charging customers.

While the department has asked all banks to refund these charges to the customers, it remains to be seen how it will be practically implemented. Most banks are already under stress and may not be willing to write back any such costs lest it impacts their financials.