Negative impactSector
Proposed UPI charges may push street vendors towards cash, finds ISB study
Economic Times 3 hrs ago·5 Nov 2026, 2:16 am
A study by the Indian School of Business suggests that proposed charges on UPI transactions could drive street vendors back to using cash. The research indicates that a significant portion of these vendors make supplier payments exceeding Rs 2,000, which would fall under the new fee structure. While vendors are exempt from charges on their own customer receipts, they could face costs when paying suppliers who are not covered by the small-business exemption.
This shift could impact the broader digital payments ecosystem and the merchants who rely on them. If vendors return to cash, it may reduce the volume of digital transactions in the informal sector. Investors should monitor the final implementation of these rules and the government's response to ensure the policy achieves its intended goals without unintended consequences for small businesses.
Key takeaways
- Category: Sector.
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