The CPI(M) has vehemently opposed the Union government's controversial proposal to introduce charges on UPI transactions, labelling it a significant breach of public trust after years of promoting the digital payment system as a free public utility.
Key Points
- CPI(M) strongly opposes the Union government's proposal to levy charges on UPI transactions.
- The party views the move as a "breach of public trust," given UPI was promoted as a free public utility.
- The government's proposal seeks to monetise the widely adopted UPI infrastructure.
- CPI(M) links the proposed charges to a decade-long trend of increasing banking fees.
- The party demands immediate withdrawal of the legislation, advocating for UPI to remain a free and publicly accountable system.
The CPI(M) on Thursday opposed the Union government's proposal to levy charges on UPI transactions, calling it a "breach of public trust" and demanding immediate withdrawal of the proposed legislation.
In a statement, the party's Politburo said the Modi government had "aggressively promoted digital payments and UPI (Unified Payments Interface) as a free public utility", with the prime minister "repeatedly urging citizens, small traders and businesses to abandon cash and embrace digital transactions".
"The PM himself has featured in advertisements including that of a private payments company promoting UPI. In fact, this promotion was even posed as a justification for demonetisation," it said.
Government's Shift On Digital Payments
The CPI(M) said after encouraging people to adopt UPI as the preferred mode of payment, the government is now seeking to monetise the same public infrastructure.
"Now that the ordinary citizens have adopted this as the means of payment/transaction, the government is now seeking to convert that very public infrastructure into a source of revenue by proposing transaction charges. This amounts to a breach of public trust as the government all along maintained that UPI would remain free," the statement said.
Broader Trend Of Increasing Banking Fees
The party said the move "cannot be seen in isolation", alleging that over the past decade, people had been subjected to "a steady increase in several banking-related charges".
"Penalties for non-maintenance of minimum balances, higher charges for ATM transactions beyond prescribed limits, debit card maintenance fees, SMS alert charges, etc, have all made accessing essential banking services dearer," it said.
The CPI(M) demanded "immediate withdrawal of the proposed legislation", saying "UPI must remain a free, universal and a publicly accountable digital payment system accessible to all".
The Lok Sabha on Thursday passed the Taxation and Other Laws (Amendment) Bill, 2026, which amends the Payment and Settlement Systems Act, 2007, to empower the Centre to notify electronic payment modes on which banks and payment service providers may levy charges, replacing the existing legal provision that bars such charges on specified electronic payment modes, including UPI.
