UPI must remain free for users, says GTRI
What Happened
The Global Trade Research Initiative (GTRI) urged the government to withdraw proposed charges on UPI transactions. The think tank argued that introducing a merchant discount rate (MDR) would discourage small businesses and consumers from using UPI, which has become India’s most widely used digital payment system. GTRI noted that UPI’s success rests on its zero‑cost model, and imposing fees could slow adoption and undermine financial inclusion.
Key Takeaways
The recommendation highlights concerns that UPI charges could weaken India’s digital payments ecosystem, especially for small merchants and low‑income users. Keeping UPI free is seen as vital to sustaining its rapid growth and supporting the government’s push for a cashless economy.