Unified Payments Interface (UPI) may not remain completely free forever as the digital payment system needs a sustainable financial model, NITI Aayog Vice Chairman Ashok Lahiri has said.
Speaking to Moneycontrol on the sidelines of the Global Fintech Fest 2026, Lahiri said consumers may be willing to pay a small fee for certain UPI transactions if it helps maintain an efficient and reliable payment system.
His comments come after the government recently amended the law to remove the blanket zero-MDR mandate on UPI transactions, allowing nominal charges on select high-value digital transactions.
Lahiri stressed that digital payments have become critical for expanding financial penetration in India. He also urged fintech companies to develop sustainable business models, highlighting their potential to transform the country’s banking and financial services ecosystem.
The debate over UPI charges comes as India’s digital payments ecosystem continues to scale rapidly. UPI processed 24.51 billion transactions worth about ₹29.82 lakh crore in August 2026, according to recent data.
As UPI expands both within India and internationally, the question of how to fund and sustain the infrastructure behind the platform is becoming increasingly important.
