why indian gov adding charges to upi

As of now, there are no charges levied by the Indian government for UPI transactions. However, some banks and payment service providers may charge a nominal fee for using UPI.

The National Payments Corporation of India (NPCI), which operates the UPI platform, has introduced a new fee structure for UPI transactions starting from January 1, 2021. As per the new fee structure, banks will be charged a fee for processing UPI transactions based on the volume of transactions they process.

The NPCI has stated that the new fee structure has been introduced to ensure the sustainability of the UPI ecosystem and to encourage banks to invest in the infrastructure required to support the growing volume of UPI transactions. The NPCI has also clarified that the fee will not be passed on to consumers and that UPI transactions will continue to be free for customers.

It is worth noting that the NPCI has been working towards making UPI a more sustainable payment system for some time now. In 2018, the NPCI had announced a similar fee structure for UPI transactions, but it was deferred due to concerns raised by some of the banks. However, with the rapid growth in the number of UPI transactions in recent years, the NPCI has deemed it necessary to introduce a fee structure to ensure the long-term viability of the UPI ecosystem.