UPI Transaction fees: A recent survey indicates that an overwhelming 75% of individuals are unwilling to agree on UPI transactions fees. The use of UPI has also redused the reliance on credit and debit cards.
UPI has firmly cemented its position as a dominant payment method across entire India. This swift and easy payment solution is now gaining international traction as well. Each passing month witnesses a surge in UPI transactions, with a marked reduction in cash usage. However, a new survey reveals startling insights: if fees were to be imposed on UPI transactions, three-quarters of indians would cease using the platform entirely.
Public Rejection of UPI Transaction fees
Business Standard recently reported that the public strongly opposes any form of charges on UPI transactions. Findings show that 37% of users conduct at least half of their total transactions via UPI. Additionally, the use of credit and debit cards for digital payments has significantly reduced. The survey highlights that only 22% of respondents are willing to accept UPI transactions fees, while over 75% vehemently reject the notion. The survey, conducted across 308 districts, gathered responses from 42,000 participants.
Exponential Growth in UPI Transactions and Volume
According to data from the National Payments Corporation of India (NPCI), UPI transactions grew by 57% in volume and 44% in value during the financial year 2023-24, compared to the previous fiscal year. UPI transactions exceeded 131 billion for the first time, up from 84 billion in 2022-23. In monetary terms, the transaction value soared to ₹199.89 trillion, a significant jump from ₹139.1 trillion in the previous year.
Report to be Submitted to Ministry of Finance and RBI
The survey, conducted online between July 15 and September 20, underscores the growing significance of UPI in the lives of 4 out of 10 users, who are Firmly opposed to any direct or indirect UPI Transaction fees. LocalCircles has indicated that the findings will be forwarded to the Ministry of Finance and the Reserve Bank of India (RBI) for consideration.
