A. That was always a fear, which is that, you know, with this fee, how so ever small, there could be an incentive to move away from digital to cash back again. The fact is that, while 96% of the transactions in unit terms are less than 2000 rupees, 66% are more than 2000 rupees. 2/3rds of the total transactions are more than Rs 2000 and petrol is a good question and point because if you are at 100 rupees a litre, it doesn’t take very long for the bill to go above Rs 2000, so there the fee, the merchant will have to pay the fee and the merchant will therefore, you know, kind of encourage the customer to pay in cash. Therefore there is an incentive there to move back to cash and the and therefore the habit that we’re building up, the habit of going digital and the habit of, you know, sort of moving away from cash and, you know, currency will be broken. The currency to GDP ratio in this country remains quite high and has increased over the last few years. At the time of demonetisation, we felt this would come down, but nothing of that kind has happened. So my own view is therefore, let this continue for a few more years. Let the habit become sort of universal and let a great majority of transactions by value become digital, you before you start putting a fee on it. That’s the thought. So, you know, let this come down from 66% to below 50% or even less so that the economy does become digitalised, you know, the transactions in value terms rather than in transaction terms. Because, otherwise you would disincentivise the use of digital.
Why UPI MDR Risks Cash Comeback-Ex-NITI Aayog VC Rajiv Kumar Explains
- Post author:loknad
- Post published:September 22, 2026
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