BharatPe Co-founder Challenges Government UPI Charge Plan

BharatPe co-founder Ashneer Grover has publicly challenged the government's plan to impose MDR charges on UPI transactions, characterizing the move as a revenue collection strategy rather than a policy decision.

Grover contended that implementing charges on UPI payments amounts to indirect taxation on digital transactions, which have been promoted as a cornerstone of India's financial inclusion agenda. He questioned the rationale behind introducing costs on a payment system that has been incentivized through zero-charge mechanisms.

In his statement, Grover suggested an alternative approach: if the government believes it is incurring losses through free UPI services, it should commit fully to digital payments by shuttering the ATM network entirely and directing all transactions through UPI channels. This, he implied, would align the government's stated policy objectives with its revenue considerations.

The remarks underscore growing industry pushback against potential monetization of UPI, which has emerged as India's dominant digital payment platform since its launch. The debate highlights tensions between the government's financial objectives and the broader goal of promoting cashless transactions across the economy.