India, Oct. 9 -- The Government should withdraw the proposed UPI charges, scheduled to take effect on October 15, and keep the digital payment system free for merchants and consumers, economic think tank Global Trade Research Initiative (GTRI) said on Thursday. It said that charging merchants could raise prices, squeeze small business earnings and weaken household demand.

The charges would also reduce UPI's price advantage over cards, benefiting US card networks and payment platforms, the GTRI said, adding that an independent audit should establish and publish UPI's actual running costs.

"The Government should withdraw the proposed UPI charges scheduled to take effect on October 15 and keep UPI free for merchants and consumers," said GT...