A recent survey conducted by LocalCircles indicates that a vast majority of users would cease using the Unified Payments Interface (UPI) if it were subjected to transaction fees. The survey, which garnered over 34,000 responses from citizens across 364 districts, revealed that 73% of respondents expressed their unwillingness to continue using UPI if transaction fees were introduced.
Highlighting the sentiment among UPI users, the survey found that only 23% of respondents were willing to bear transaction fees for UPI payments. This resounding opposition to transaction fees underscores the importance of maintaining the current fee-free nature of UPI transactions.
The survey also shed light on the frequency of UPI usage, revealing that half of UPI users conduct over 10 transactions per month. Despite the convenience and widespread adoption of UPI as a payment method, the prospect of transaction fees poses a significant deterrent for users.
The survey findings come in the wake of a discussion paper released by the Reserve Bank of India (RBI) in August 2022, proposing a tiered structure for charging fees on UPI payments based on transaction amounts. However, the finance ministry later clarified that there was no proposal to levy charges on UPI transactions.
Interestingly, the survey noted that a considerable number of respondents reported experiencing transaction fees being levied on their UPI payments at least once in the past year. This discrepancy between user experiences and policy proposals underscores the need for transparency and clarity regarding the regulatory framework surrounding UPI transactions.
As UPI continues to gain traction as a preferred mode of digital payments in India, it is crucial for policymakers to consider the preferences and concerns of users. The overwhelming opposition to transaction fees highlighted in the survey emphasizes the importance of preserving the accessibility and affordability of UPI transactions for all users.
