74% Of The Users Will Stop Using UPI If It Attracts Transaction Fee: Survey

A recent online survey conducted by LocalCircles revealed that a majority of people would stop using UPI if a transaction fee is charged for it. The survey received over 34,000 responses from citizens in 364 districts, with 67 per cent of male respondents and 33 per cent of women. 

The Reserve Bank of India (RBI) released a discussion paper in August 2022 proposing a tiered structure charge on UPI payments based on different amount bands. However, the finance ministry clarified that there is currently no proposal to levy charges on UPI transactions. 

According to the survey, only 23 per cent of UPI users are willing to bear a transaction fee on payment, while 73 per cent of those surveyed indicated that they would stop using UPI if a transaction fee is introduced. Additionally, 37 per cent of UPI users surveyed claimed that they have experienced a transaction fee being levied on their UPI payment at least once in the last 12 months. 

The survey also found that one in two UPI users conduct over 10 transactions every month. The number of responses varied on each question asked in the survey.