A petition has been brought before the Supreme Court of India by an unnamed group of UPI users and merchants, challenging a proposed fee that would apply to all UPI transactions exceeding ₹2,000. The petition contends that the government’s plan to introduce a charge on higher‑value UPI transfers would unfairly burden both consumers and small‑scale merchants.
The petitioners maintain that person‑to‑person payments and any transaction up to ₹2,000 should remain free, citing widespread use of UPI for everyday purchases. Moreover, they argue that merchants who receive up to ₹1 lakh per month through UPI QR codes should be exempt from the fee, as the current fee structure could jeopardise their livelihoods.
The Supreme Court will review the legal arguments and assess whether the proposed levy violates the principles of a free digital payment ecosystem. The outcome could have significant implications for the fintech industry and the millions of UPI users across West Bengal and beyond.
Industry observers note that the ruling could influence future digital payment policies and the balance between revenue generation and consumer protection. The decision is expected to be announced in the coming weeks.
