UPI Could Have Stayed Free For 20 Years If ₹22,000 Crore Wasn’t Waived For Subhash Chandra: Ex-BharatPe CEO

Former BharatPe CEO Ashneer Grover has questioned the need for government support for UPI, arguing that India’s digital payments system could have remained free for the next 20 years if ₹22,000 crore had not been waived for Subhash Chandra.

The remark comes amid controversy over the resolution of Subhash Chandra’s personal insolvency case. The NCLT approved a repayment plan under which Chandra would pay around ₹6.5 crore against admitted creditor claims of about ₹22,006 crore. The case has drawn attention because of the massive difference between the claims and the amount to be paid under the approved plan.

Grover made his comments while reacting to the government's decision to introduce charges on UPI transactions above ₹2,000. Pointing to the government's annual allocation of around ₹8,000 crore to support UPI, he argued that the ₹22,000 crore amount could have funded the system for years.

“Bhai Chandra sahab ke ₹22,000 crores maaf nahi karte to India mein UPI agle 20 saal tak free chal jaata,” Grover said.

He also questioned why government support is needed when the National Payments Corporation of India (NPCI), which operates UPI, has substantial cash reserves and generates significant profits.

According to figures cited by Grover, NPCI has around ₹6,119 crore in cash on its balance sheet and a pre-tax operating profit of about ₹1,900 crore. He also claimed that the government collected nearly ₹1,000 crore in tax from NPCI last year.

Under the new framework, UPI transactions above ₹2,000 will attract a 0.4 per cent Merchant Discount Rate (MDR), while payments up to ₹2,000 will remain free.

Grover’s argument puts the focus on who should bear the cost of maintaining and expanding India’s rapidly growing digital payments infrastructure — the government, NPCI or users through transaction charges.