India's UPI Digital Payments Success Now Faces Sustainability Challenges

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India built one of the world's largest digital payments ecosystems, primarily through its Unified Payments Interface (UPI) platform. The system has processed billions of transactions, transforming how hundreds of millions of Indians send and receive money. However, the infrastructure that enabled this rapid growth is now facing questions about long-term financial viability. The key challenge involves how to sustain and fund the system, given that most UPI transactions currently carry zero fees for users. Stakeholders are now debating who should bear the costs of maintaining and expanding this vast payments network.

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