Seems the Centre is misjudging the public mood right now. Why else introduce a fee on UPI and make things worse for your own standing?
Sure, running UPI costs money, no one expects it to be entirely free. But the cash-heavy system we had before cost significantly more. In reality, UPI saves the govt far more money than it takes to maintain.
Think of it like this: You used to pay ₹1,500 a month to ride a crowded bus. Then you switched to the metro, which costs only ₹800 a month. Instead of being happy that you're saving ₹700 every month and getting a better ride, you start complaining about spending ₹800. That’s exactly what’s happening here. The govt is complaining about the visible maintenance cost of UPI while completely ignoring the massive savings and value it has gained.
By shifting millions of transactions online, UPI reduced tax evasion, boosted compliance, and expanded the formal economy. It slashed cash-handling costs like printing, transport, and security, while ensuring cleaner, leak-proof welfare payouts. Its digital trail suppresses black money and fraud.
So why ruin one of the most successful systems India has ever built? The claim that merchants will absorb the cost instead of consumers is absurd. There isn't a single fee or tax levied on businesses in India that doesn't ultimately get passed down to the buyer. A 0.4% fee, even capped at ₹300 per transaction, will simply be tacked onto consumer bills, driving people right back to using cash.