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Business
IIT Bombay Warns New UPI Fee Framework May Hurt Consumers
✍️ Asianet Newsable
🗓 12 Oct 2026, 09:37 AM
👁 9
IIT Bombay has cautioned that the recently proposed UPI fee framework could indirectly affect consumers.
IIT Bombay has issued a warning regarding the new UPI fee framework that is set to be implemented by the National Payments Corporation of India. The institute argues that the revised fee structure could have indirect consequences for consumers, potentially increasing the cost of digital payments.
The warning comes as the government and payment operators review the fee model to balance revenue generation with consumer affordability. IIT Bombay’s analysis suggests that higher transaction costs could be passed on to users through increased service charges or reduced incentives for digital wallet usage.
While the exact impact remains to be quantified, experts caution that any rise in transaction fees may discourage the adoption of UPI, which has been a key driver of financial inclusion in India.
The institute has called for a detailed assessment of the fee changes to ensure that consumer interests are not compromised in the pursuit of higher revenue for payment intermediaries.
The warning comes as the government and payment operators review the fee model to balance revenue generation with consumer affordability. IIT Bombay’s analysis suggests that higher transaction costs could be passed on to users through increased service charges or reduced incentives for digital wallet usage.
While the exact impact remains to be quantified, experts caution that any rise in transaction fees may discourage the adoption of UPI, which has been a key driver of financial inclusion in India.
The institute has called for a detailed assessment of the fee changes to ensure that consumer interests are not compromised in the pursuit of higher revenue for payment intermediaries.