The Chief Justice of India slammed the Reserve Bank of India's latest UPI fee guidelines on X, arguing that the new rules impose undue costs on consumers. The post highlighted a ₹30,000 cap on ATM withdrawals per month and a ₹2,000 fee on single‑merchant UPI payments. Those limits, according to the Chief Justice, turn a once‑free payment system into a paid service for ordinary users.
UPI, which processes more than 4.5 billion transactions a month, had been largely free of charge since its launch in 2016. Earlier this year, the RBI introduced a modest fee for high‑value merchant transactions to curb fraud, but the new thresholds were seen as an unnecessary escalation.
The RBI’s spokesperson, Meena Kumari, said the bank was "reviewing the feedback" and would engage with stakeholders before finalising any changes. Several fintech firms, including Paytm and PhonePe, have already expressed concerns that the fees could deter small‑business merchants and low‑income users.
Legal experts warn that the Chief Justice’s critique could open the door to a judicial review of RBI’s authority to impose such fees. If the courts find the rules unconstitutional, the RBI will need to either roll back the limits or provide a robust statutory basis for the charges. The central bank has scheduled a stakeholder forum for next month to discuss the issue in detail.