Archive · 15 Sep 2026
Ashneer Grover Warns UPI Charges Could Revive India’s Cash Economy
UPI is a way people and businesses pay digitally in India.
A government notification protects UPI payments up to ₹2,000 from fees.
It may still allow fees on larger payments, especially for businesses.
Ashneer Grover disagrees with this possibility.
He says the fees would work like a new tax.
He worries that shops might stop accepting large UPI payments.
Customers might then use cash or split payments into smaller amounts.
Grover also questioned why fees are needed when banks and payment organizations have reported large surpluses and profits.
Ashneer Grover criticized the possibility of fees on UPI transactions above ₹2,000, calling them a backdoor tax.
A government notification prohibits charges on UPI payments up to ₹2,000 and RuPay debit-card payments.
Transactions above ₹2,000 represent about 4% of UPI volume but roughly 66% of its total value.
Grover warned that merchant fees could lead businesses to reject larger UPI payments and encourage cash use.
He questioned the need for charges, citing financial surpluses and profits at the Reserve Bank of India, banks, and NPCI.
- Who
- BharatPe co-founder Ashneer Grover, along with the government, banks, payment providers, and NPCI.
- What
- The possible introduction of charges on UPI transactions above ₹2,000, particularly merchant payments.
- When
- The comments followed a government notification on UPI and RuPay payment charges; no specific date is provided.
- Where
- India.
- Why
- Grover says the charges would amount to a tax and could encourage cash payments, while the notification leaves larger transactions open to possible fees.
- Protected transactions
- UPI transactions up to ₹2,000 and RuPay debit-card payments cannot be charged under the government notification.
- Large-transaction share
- UPI transactions above ₹2,000 account for about 4% of transaction volume and roughly 66% of total value.
- Possible fee
- Larger UPI transactions, especially merchant payments, could potentially face charges or a Merchant Discount Rate.
- RBI surplus transfer
- The Reserve Bank of India transferred ₹2.87 lakh crore in surplus to the government, according to Grover.
- Listed bank profits
- Grover cited total listed bank profits of ₹4.11 lakh crore.
- NPCI surplus
- Grover cited NPCI’s pre-tax surplus of ₹1,888 crore.
- Predicted impact
- Grover warned that charges could lead to greater cash use, more ATM demand, and higher cash-handling costs.