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GTRI Urges Government to Withdraw Proposed UPI Charges
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News18•08-10-2026, 16:00
GTRI Urges Government to Withdraw Proposed UPI Charges
- •Economic think tank GTRI has called on the government to withdraw the proposed UPI charges set to begin on October 15.
- •A 0.4 per cent fee is introduced on merchant transfers over Rs 2,000, ending six years of completely free UPI transactions.
- •GTRI warns that charging merchants could raise prices, squeeze small business earnings, and weaken household demand.
- •The think tank noted that the move could reduce UPI's price advantage and benefit US card networks like Visa and Mastercard.
- •GTRI suggested that banks and payment apps should fund the running costs to keep UPI free, leveraging their substantial benefits and data gains.
Key Questions Answered
The government has introduced a 0.4 per cent fee on merchant transfers exceeding Rs 2,000 made through the platform starting October 15, while everyday person-to-person transactions and small payments remain completely ring-fenced from any charges.
GTRI argues that charging merchants could drive up prices, squeeze small business earnings, weaken household demand, and erode UPI's price advantage over US card networks like Visa and Mastercard.
Banks save on handling cash and operating ATMs, while payment apps like PhonePe and Google Pay gain access to valuable customer spending data and cross-selling opportunities for loans, insurance, and mutual funds.
