Banks requested to refund costs collected after Jan 1 on UPI, RuPay funds

The Central Board of Direct Taxes (CBDT) on August 30 requested banks to refund any costs they collected after January 1 on transactions made by way of digital means. In response to a round, this comes after the CBDT obtained a number of representations that mentioned banks are charging a further payment on transactions made by way of UPI. 

These banks have been charging for each transaction past a sure variety of transaction which was in violation of the Cost and Settlement System Act, the CBDT famous.

“That is in violation of the Round no 32/2019 dated December 30, 20219, which was issued by CBDT to make clear that based mostly on part 10A of (Cost and Settlement System (PSS) Act, any cost together with MDR (Service provider Low cost Fee) shall not be relevant on or after January 1, 2020 on funds made by way of digital modes,” ANI quotes CBDT launch as saying.

“Banks are, due to this fact, suggested to instantly refund the fees collected, if any, on or after January 1, 2020, on transactions carried out utilizing the digital modes prescribed underneath part 269SU of the IT Act and to not impose costs on any future transactions carried by way of the mentioned prescribed modes,” the round added.

Therefore, it mentioned that the Ministry has suggested the banks to instantly refund the fees collected, if any, on or after January 1, 2020, on transactions carried out utilizing digital mode prescribed underneath part 269SU of the IT Act and to not impose costs on any future transactions carried by way of digital mode. 

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