The mobile payments system is a public good indeed, but zero transaction charges are not a viable solution.
On 17 August, the Reserve Bank of India issued a discussion paper where it sought feedback from stakeholders on whether charges on the Unified Payments Interface can be reintroduced. This was immediately followed by a statement from the finance ministry stating that the government for now is not planning any proposal to reintroduce any charges on the popular digital payments platform after some backlash on social media.
Since January of 2020, banks and payment operators have borne the cost of UPI while the service has been kept free for merchants and customers. In this period, UPI adoption has grown leaps …
Ashwin writes on fintech and banking at The Morning Context. He joins us from The Economic Times, he worked across the finance, tech and startup verticals, breaking stories related to India’s banking system, startups in the new economy, digital payments, insurance and cryptocurrencies.
Writer
ashwin@mailtmc.com
Delhi