Private sector banker HDFC Bank said on Friday that it is considering rolling back its plans to charge its customers for transactions made via the Unified Payments Interface (UPI) from July 10.
The Economic Times reported on Friday that a bank spokesperson announced on microblogging site Twitter that the proposed measure would not be implemented by the bank.
The National Payments Corporation of India which runs the UPI railroads had requested the bank to reconsider the decision and is expected to call a meeting with bankers very soon, ET said.
The bank had in a mail to its customers on Monday informed them that a fee of Rs 3 plus taxes would be charged on transaction amounts of upto Rs 25,000, while transaction amount of Rs 25,001 to Rs 100,000 would be charged at Rs 5 plus taxes.
UPI is a payment system launched by the National Payments Corporation of India (NPCI) to facilitate instant fund transfers between two bank accounts on the mobile platform. It can be used for making both person-to-person (P2P) and person-to-merchant (P2M) transfers.
The State Bank of India (SBI) was widely expected to implemented its UPI charges on customer transactions, though the bank was quick to deny any such plans.
According to RBI data, UPI clocked 9.2 million transactions during the month of May against 6.9 million in the previous month.
