The government’s quiet amendment to allow charges on UPI transactions is a mistake. Even if only 5% of transactions are targeted initially, the signal is clear: free UPI may not last. UPI made digital payments democratic. A street vendor, a student, a small shop, all could transact without fees. That is why India has 500 million UPI users. Put a charge, and people will go back to cash.
The RBI Governor says "somebody has to pay." True. But why should the user pay? The government has already spent ₹11,349 crore subsidizing UPI. Another ₹2,000 crore is budgeted. That is taxpayers’ money. To now ask users to pay again is double taxation. The argument that fees will help players invest in infrastructure is weak. Banks and fintechs made money from the ecosystem UPI created. They benefited from lower cash handling costs.
Targeting only large merchants and high-value transactions may seem fair. But policy has a way of expanding. Today it’s ₹2,000+. Tomorrow it could be ₹500. India’s digital success story is built on zero-cost. Demonetization pushed people to UPI. Now charging them feels like betrayal.
If the government needs revenue, find other ways. Don’t kill the goose that laid the golden egg. UPI is not just a payment system. It is financial inclusion. Withdraw this amendment. Keep UPI free. The cost of losing trust will be far higher than any fee collected.