Govt, RBI need to share cost of maintaining UPI infrastructure: Report

The government and the Reserve Bank of India need to share the cost with banks associated with maintaining UPI infrastructure as it reduces the demand for cash and helps in curtailing expenditure on printing and managing currency notes, according to a report prepared by IIT-Bombay.

Observing that about Rs 5,000 crore is spent annually on printing cash alone and even more on managing it, the report said, “The expenditure towards maintaining Unified Payment Interface (UPI) may be much lower and could even curtail the expenditure on cash.”

The report further said UPI as a digital payments platform increases efficiency towards tax compliance, and provides overall convenience for public good.