A fresh debate has erupted over the proposed return of charges on higher-value UPI transactions, with former BharatPe co-founder Ashneer Grover strongly criticising the move. His comments came after the government exempted UPI transactions of up to Rs 2,000 from charges, triggering discussions over whether payments above that threshold could attract a merchant fee.
What Has Changed for UPI Payments?
The government has clarified that UPI transactions of up to Rs 2,000, as well as RuPay debit-card payments, will remain exempt from charges imposed by banks or payment providers. However, reports indicate that transactions above Rs 2,000 could face a 0.4% merchant discount rate (MDR) under the emerging framework. The development has raised concerns among merchants and digital-payment users about whether additional costs could eventually be passed on to consumers.
Ashneer Grover Questions the Move
Grover has called any charge on UPI transactions a form of “tax collection”, arguing that UPI has become one of India’s most important digital-payment infrastructures. He also questioned why merchants and small shopkeepers should bear additional costs when banks involved in the UPI ecosystem are already profitable.
Why Grover Mentioned Rs 30,500 Crore
One of Grover’s key arguments revolves around the cost of India’s cash ecosystem. He pointed to an annual cost of more than Rs 30,500 crore for operating ATMs and handling cash, arguing that encouraging digital payments could help reduce these expenses. His broader concern is that imposing charges on UPI could make cash more attractive again and potentially undermine India’s rapid shift towards digital payments.
What Happens Next?
The government and industry are now weighing how the UPI ecosystem can be funded while keeping digital payments affordable. Reports indicate that MDR rates for transactions above ₹2,000 could be finalised soon, with implementation discussions pointing towards October 2026. The debate is therefore no longer simply about a payment fee—it is about who should bear the cost of maintaining India’s rapidly expanding digital-payment infrastructure.
Also Read: Delhi-NCR Air Pollution: CAQM Asks States To Postpone Physical Sports Events In November-December
Shamshad Ali is a New Delhi–based journalist with over six years of experience spanning breaking news writing, on-the-ground reporting, and editing. When he isn’t chasing headlines, Shamshad is usually exploring new destinations, discovering hidden culinary gems, and striking up conversations with strangers. Many of whom turn out to be great sources, and even better friends. He can be reached at shamshadali.dar@gmail.com.
The post “Rs 30500 Crore ATMs Handling and Cash Logistics”: What Ashneer Grover Said On UPI Charge Above Rs 2000 appeared first on NewsX.