UPI and the cost of policy reversal

The government is considering a proposal to charge a small fee on transactions made through the Unified Payments Interface (UPI) system, reversing a decade-long policy of free transactions. This move could weaken the incentives for banks and fintech companies to invest in UPI, potentially undermining its role in facilitating digital payments. The reversal of this policy could also have broader implications for the growth of digital payments in the country.

Read the source report: The Hindu