Why UPI Should Stay Free Despite Its Infrastructure Costs
Argument
Senior journalist argues that UPI should stay free, even after Parliament passed a bill that could allow a merchant discount rate on UPI payments. The claim is that the economic and social gains from zero-cost digital payments are greater than the infrastructure bill.
Assessment
The case rests on UPI’s wider public value: it lowers cash handling costs, supports traceable digital payments, and has already become the default for everyday transactions. The piece also argues that banks and the state already subsidise other payment rails, so UPI should be treated as a public good rather than a normal fee-charging service.
Counterpoints
The strongest objection is practical: someone still has to pay for UPI infrastructure, cybersecurity and fraud prevention, especially as transaction volumes rise.
The writer accepts that merchants on thin margins may try to pass MDR costs on to users, which could push some people back toward cash for higher-value payments.