Consumer body seeks retention of free UPI transactions

Citizens’ Voice Coimbatore (CVC), a consumer organisation, has urged Union Finance Minister Nirmala Sitharaman to keep Unified Payments Interface (UPI) transactions free and consider incentives to encourage wider adoption of digital payments.In a representation, it said UPI had emerged as one of the most convenient, transparent and widely accepted modes of payment in the country, particularly after demonetisation and the COVID-19 pandemic.CVC said the widespread use of digital payments had contributed to financial inclusion and reduced dependence on cash. It also pointed out that increased digital transactions could reduce costs associated with currency printing, transportation, storage and distribution, besides expenses related to cash handling and ATM operations.The organisation expressed concern over reports about the possibility of imposing charges on consumers for certain UPI transactions. Such charges, particularly on routine and small-value transactions, could discourage digital payment, it said.CVC urged the government to ensure that small-value and routine UPI transactions remained free. It suggested that unusually high-value transactions could instead be subjected to appropriate risk-based monitoring without imposing a general charge on users.It called for banks and payment service providers to adopt cost-efficient digital payment models rather than passing additional costs on to consumers. The government and the Reserve Bank of India could consider incentives or reward mechanisms to encourage digital payment adoption among small traders and ordinary consumers, it said.CVC said consumers were already paying various banking-related charges, including penalties for non-maintenance of minimum balances, cheque book fees, ATM transaction charges and charges on high-value cash remittances.“The policy objective should be to make digital payments more affordable, accessible and attractive, rather than imposing additional costs on consumers,” the organisation said. Published - August 31, 2026 06:35 pm IST