Former NITI Aayog Vice-Chairman Recommends Maintaining Zero-Fee UPI Policy
- Reports
- 4
- Developments
- 1
- Repetition
- 75%
New informationRepeats or wire copies
What happened
Rajiv Kumar, former vice-chairman of NITI Aayog, recommended that the Indian government maintain its zero-fee policy for UPI transactions. This recommendation follows the government's introduction of a 0.4% fee on person-to-merchant UPI transactions over Rs 2,000, which takes effect on October 15. Kumar stated that the overall benefits of UPI outweigh the Rs 20,000 crore cost of maintaining its infrastructure.
From rediff.com
Why it matters
Kumar views UPI as a public good and warned that charging fees on larger transactions could incentivize a shift back to cash. The policy change directly impacts the cost structure of digital payments and the rate of adoption of digital financial services in India.
From rediff.com
Who's involved
- Rajiv KumarFormer vice-chairman of NITI Aayog who made the recommendation regarding UPI fees.
- Niti AayogPolicy commission of the Government of India where Rajiv Kumar previously served.
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The entities involved
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Rajiv Kumar
researcher ORCID 0000-0001-6474-631X
Nothing else this week.
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Niti Aayog
Policy Commission of Government of India