Fund from PM Modi ahead of LS polls? People unexpectedly get money credited to their accounts

KOCHI: Many people were surprised when money was unexpectedly credited to their bank accounts. Some mistakenly believed that it was the amount given by Prime Minister Narendra Modi before the general elections. Even bank employees got to know about this after the customers made enquiries. This amount was the bank refunding the extra fees collected from the account holders.

Banks charge a fee if bank transactions exceed a certain limit in three months. Commercial banks used to collect such fees from customers for UPI transactions. However, the Reserve Bank recently suggested that payments made through UPI should not be treated as bank transactions. Many banks then reimbursed the fees charged and deposited them into the customers' accounts. At the end of the month, many people came to know about this when an unexpectedly large amount was credited to their account. Account holders of Federal Bank, a leading private bank, received hundreds to thousands in their accounts on Wednesday. Sources in the banking industry said that both public and private banks will refund this amount in the coming days.

UPI transactions to get even more popular

The Reserve Bank's directive that UPI payments cannot be treated as bank transactions will greatly help the growth of this sector. With this, UPI transactions will be completely free. The changes introduced by the Reserve Bank in UPI transactions from January 1 will be a boon for the customers.