​Pay wall: On a charge on UPI transactions

The article discusses the government's pending decision to allow charges on UPI transactions, following an amendment to the Payment and Settlements Systems Act via the Taxation and Other Laws (Amendment) Bill, 2026. Previously, UPI and RuPay debit card transactions were exempt. The proposed charges are initially limited to large merchants and transactions above ₹2,000. The move aims to cover the costs borne by payment players, who have been operating UPI for free since 2020, with some costs currently subsidized by taxpayers. Concerns include potential shifts back to cash and the burden on consumers, while the Finance Minister argues it will boost infrastructure investment. The article also suggests the RBI could fund UPI development from its surplus.