Why is UPI free?

UPI is free for end-users because it is considered a digital public good by the Government of India. To promote a cashless economy and financial inclusion, the government ensures there are zero transaction fees for consumers. While traditional banking methods often involve service charges, the Unified Payments Interface (UPI) framework is designed to be low-cost and accessible to everyone. This policy encourages widespread adoption, allowing even small-value transactions to be completed instantly and securely without any additional financial burden on the common citizen.