NITI Aayog’s former vice-chairman Rajiv Kumar on Monday suggested the government to continue with zero-fee UPI transactions for at least a few more years until the currency-to-GDP ratio shows some tendency to decline, and then review the situation.
Kumar told PTI that he is not in favour of charging any fee from merchants for using UPI for any transaction value, and the government should treat it as a public good with extensive positive externalities.
“Their overall benefits well far outweigh the cost of Rs 20,000 crore that the public exchequer has to bear for maintaining the UPI infrastructure.
“…so let’s continue with zero-fee UPI transactions for at least a few more years until the currency-to-GDP ratio shows some tendency to decline,” he said.
While 96 per cent of unit transactions are less than Rs 2,000, it is estimated that nearly 66 per cent of transactions by value are above this level.
“This presents a very significant opportunity for transactions to shift back to cash
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