India to impose controversial fee for UPI instant payments: Who benefits?

The Indian government, led by Prime Minister Narendra Modi, is set to impose a 0.4% fee on UPI transactions exceeding 2,000 rupees starting October 15. While person-to-person transactions will remain free, this new measure raises concerns among businesses and has triggered a political storm, with the opposition accusing Modi of passing costs onto merchants. The government justifies this levy as necessary for maintaining the digital payment infrastructure.