Majority of users to stop using UPI if it attracts transaction fee: Survey

UPI

New Delhi: A majority of people will stop using UPI if a transaction fee is levied on it, according to an online survey by LocalCircles.

However, a sizable number of respondents claimed that they have experienced a transaction fee being levied on their UPI payment once or more in the last one year, it added.

LocalCircles on Sunday said the survey received over 34,000 responses from citizens in over 364 districts, comprising 67 per cent of male respondents and 33 per cent of women.

In August 2022, the Reserve Bank of India (RBI) released a discussion paper proposing a tiered structure charge on UPI payments based on different amount bands. Following the RBI discussion paper, the finance ministry clarified that there was no proposal to levy charges on UPI transactions, LocalCircles said in its report on UPI transaction fees.

“Only 23 per cent of UPI users surveyed are willing to bear a transaction fee on payment. 73 per cent of those surveyed indicated that they will stop using UPI if a transaction fee is introduced,” the survey said.

When asked about the frequency of UPI usage, the survey found that 1 in 2 UPI users conduct over 10 transactions every month.

The number of responses varied on each question asked in the survey.

“37 per cent of UPI users surveyed claim that they have experienced a transaction fee being levied on their UPI payment once or more in the last 12 months,” the survey report said.

PTI 

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