Consumer body seeks retention of free UPI transactions
A consumer advocacy group has urged the Indian government to keep UPI transactions free of charge to encourage digital payment adoption. They argue that imposing fees could hinder financial inclusion and increase costs for small-value users.
Why it matters
UPI is a critical component of India's digital economy; policy changes regarding transaction fees directly impact millions of daily users and small businesses.
Citizens’ Voice Coimbatore (CVC), a consumer organisation, has urged Union Finance Minister Nirmala Sitharaman to keep Unified Payments Interface (UPI) transactions free and consider incentives to encourage wider adoption of digital payments.
In a representation, it said UPI had emerged as one of the most convenient, transparent and widely accepted modes of payment in the country, particularly after demonetisation and the COVID-19 pandemic.
CVC said the widespread use of digital payments had contributed to financial inclusion and reduced dependence on cash. It also pointed out that increased digital transactions could reduce costs associated with currency printing, transportation, storage and distribution, besides expenses related to cash handling and ATM operations.
The organisation expressed concern over reports about the possibility of imposing charges on consumers for certain UPI transactions. Such charges, particularly on routine and small-value transactions, could discourage digital payment, it said.
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