New Delhi, September 16 (Daily Kiran) : Ashok Kumar Lahiri, Vice Chairman of NITI Aayog, stated on Wednesday that implementing minor fees on certain UPI transactions could help make India’s digital payment system self-reliant. He emphasized that these fees should be kept as low as possible to avoid burdening consumers.
Lahiri proposed considering a “user-pay principle” for UPI. He argued that businesses benefit significantly from digital payments, as they reduce the costs and hassles associated with handling cash and depositing checks.
When asked if imposing fees on UPI payments exceeding ₹2,000 could harm digital payment adoption, Lahiri responded, “Keep it as low as possible, but please implement it so that UPI can become a self-sustaining business.”
During the discussion, Srinivasa MN, Director and Co-founder of BillDesk, highlighted that UPI has become a lifeline for consumers in daily transactions, thanks to substantial investments from banks, financial institutions, and the overall payment ecosystem.
He noted that the number of UPI users in India has surpassed 500 million, and further expansion will require increased investment in fraud prevention, cybersecurity, and consumer awareness.
Srinivasa clarified that the proposed UPI fee would not apply to consumers or low-value transactions. Instead, it would be limited to transactions over ₹2,000. Regular payments like utility bills, government taxes, insurance premiums, and fuel payments would have discounted fees.
Additionally, he suggested that a portion of the revenue from the Merchant Discount Rate (MDR) could be allocated to a special fund aimed at promoting UPI transactions, especially among small traders.
Lahiri also urged Indian companies to identify new export markets amid global uncertainties. He suggested that the private sector, rather than the government, should determine where Indian products might have better demand.
“The world is very large,” he remarked, referencing opportunities in Africa, Latin America, East Asia, and Australia, while acknowledging that pinpointing a specific market can be challenging.
Srinivasa concluded by stating that India is currently a global leader in retail digital payments, accounting for more than half of the world’s total retail digital transactions. However, with UPI reaching around 500 million users, there remains significant potential for further growth.
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