3 weeks ago

UPI Was Meant To Be a Protocol, Not a Product

UPI Was Meant To Be a Protocol, Not a Product
UPI was meant to be a protocol · financialexpress.com

UPI is a way for people in India to send and receive money using their phones, and it is mostly free.

It was built like a public playground that everybody can use, instead of a private road owned by one company.

The article explains how payment systems can be used as tools of political control, like when Iran and Russia were cut off from global payment networks.

In 2016, India launched UPI so that no single company could control how Indians pay.

UPI became super popular — in one year it handled more payments inside India than the card network Mastercard handled all over the world.

Now, banks say keeping UPI running costs them a lot of money and want to charge for every payment.

In August, India's government changed the law so that charging could be allowed.

Some experts worry that charging for every payment would turn a public playground into a private business.

They think India should instead make money from extra services, like blocking money for stock market orders, and keep the basic transfer free.

They also suggest sharing UPI's design openly with other countries, the way Brazil shared its Pix system.

Key facts

UPI launch year
2016
FY26 transaction volume and value
24,162 crore transactions worth Rs 314 lakh crore
FY26 users
554.9 million
FY25 NPCI earnings
Rs 3,270 crore
FY25 NPCI surplus
Rs 1,552 crore
Bank incentives
Rs 2,196 crore
International presence
12 UPI linkages live across 10 countries; only 3 carry person-to-person payments
Law change
Parliament amended the section that made UPI free by law on August 6

Sources

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