Economic think tank urges govt to withdraw proposed UPI transaction charges

The Gujarat Think Tank for Research and Innovation (GTRI) has called on the government to withdraw the proposed 0.4% fee on UPI merchant transactions exceeding ₹2,000, citing potential economic harm.

The think tank warned that the charge could lead to increased consumer prices, strain small business margins, and dampen overall demand in the economy. UPI has emerged as a critical payment infrastructure, particularly benefiting small merchants and retailers who rely on low transaction costs.

GTRI's recommendation signals growing concerns among economic analysts about the fee structure. The proposal, if implemented, could alter the competitive landscape of digital payments in India and affect the affordability of cashless transactions for consumers and merchants alike.