CHENNAI: CPI state secretary M Veerapandian condemned the reported proposal to levy charges on UPI transactions above Rs 2,000 from October 15, saying the move would eventually burden the public and fuel inflation.

In a statement, Veerapandian said the National Payments Corporation of India (NPCI) had announced that charges of up to 2% would apply to business-related UPI transactions, while UPI services would continue to be free for ordinary consumers.

He said transactions above Rs 2,000 for services such as railways, telecommunications, petrol pumps, insurance premiums, electricity and water would attract a fixed charge of Rs 5.

“There is a possibility of these charges being increased gradually. Such charges will directly and severely affect the public, “Veerapandian said.

He said if transaction charges were imposed on businesses, the additional cost would be passed on to consumers through higher prices, resulting in inflation.

Veerapandian alleged that charging for UPI services would benefit multinational companies, banks and financial capital, and accused the BJP-led Union government of acting in favour of corporate interests at the expense of ordinary people.