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Business
UPI’s Free Rs 30 Transactions Face Rs 20,000‑Crore Sustainability Question
✍️ NDTV
🗓 20 Aug 2026, 06:42 PM
👁 5
India’s Unified Payments Interface offers zero‑fee transactions up to ₹30, but experts warn the model may soon confront a ₹20,000‑crore cost challenge.
India’s Unified Payments Interface (UPI) has built its popularity by allowing users to make transactions of up to ₹30 without any charge. The zero‑fee structure has been credited with driving digital payments adoption across the country.
The free‑up‑to‑₹30 model is viewed as a “miracle” that helped UPI capture billions of transactions and support small‑value commerce.
However, analysts point out that the cost of processing these transactions is significant, and the cumulative expense could reach around ₹20,000 crore. The looming financial burden raises questions about how long the service can remain free and whether fees may be introduced for low‑value payments.
The free‑up‑to‑₹30 model is viewed as a “miracle” that helped UPI capture billions of transactions and support small‑value commerce.
However, analysts point out that the cost of processing these transactions is significant, and the cumulative expense could reach around ₹20,000 crore. The looming financial burden raises questions about how long the service can remain free and whether fees may be introduced for low‑value payments.