UPI isn’t Free
While the UPI is a convenient and widely used digital payment platform in India, it is important to note that it is not entirely free. In fact, the government incurred a subsidy cost of Rs. 1,044 crore in the FY2022 to enable zero charges for processing UPI transactions. This means that while consumers do not have to pay a direct fee for using UPI, there are costs involved in facilitating these transactions that are being borne by the government.
