UPI transactions to remain free, says RBI Guv Sanjay Malhotra

Reserve Bank of India (RBI) governor Sanjay Malhotra on Wednesday (October 1) dismissed speculation about charges on UPI transactions, putting to rest recent concerns over potential fees on the widely-used digital payment system.

Also Read: New UPI rules effective from today to boost stability, efficiency

No charges on UPI transactions

Addressing concerns over possible charges on digital payments, Malhotra stressed that UPI will remain free for users under the current policy.

He clarified that there is no proposal to levy fees, reaffirming both the RBI and government’s commitment of keeping UPI a zero-cost platform and encouraging wider adoption of digital payments across the country.

The clarification comes at a time when UPI transactions are hitting record highs, strengthening India’s position as the world’s largest real-time payments market.

Also Read: Bengaluru vendors ditch UPI as GST crackdown triggers protest

India’s high-growth outlook

The RBI governor's statement comes amid renewed speculation about the sustainability of UPI’s zero-cost model.

Malhotra acknowledged in the past that UPI transactions involve costs and "may not remain free forever", and that "they need to be paid for by someone."

However, he emphasised today that no changes are being introduced at present.

He also expressed confidence in India’s economic outlook, citing a “very high growth trajectory” and the RBI’s focus on maintaining price stability.

Announcing the fourth bi-monthly monetary policy review, Malhotra said the RBI proposes to create a framework that will allow Indian banks to finance acquisitions by Indian corporates, thereby expanding the scope of capital market lending by banks.