Fact-Check: UPI Usage Remains Robust Despite Claims of Decline
• A recent report by The Wire claimed that UPI usage in India has declined following the passage of the Taxation and Other Laws (Amendment) Bill, 2026, which allows the government to impose a Merchant Discount Rate (MDR) on certain UPI transactions.
• However, data from the National Payments Corporation of India (NPCI) and the Reserve Bank of India (RBI) contradicts this claim.
Impact & Risks
The misleading report could create unnecessary panic among users and merchants, potentially undermining trust in India's digital payment ecosystem. UPI has become a cornerstone of India's digital economy, processing billions of transactions monthly. Any misinformation about its usage or policy changes could deter users and merchants from adopting digital payments, slowing the progress of financial inclusion and digital transformation in the country.
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