UPI To Stay Free For Users, Says RBI Governor Sanjay Malhotra Amid Speculation On Fees

The Reserve Bank of India (RBI) has confirmed that Unified Payments Interface (UPI) transactions will continue to remain free for users, with no charges planned at present, the Money Control reported.

RBI Governor Sanjay Malhotra clarified this on Wednesday (1 September) during the post-policy press conference, addressing growing concerns about potential fees on digital payments.

Governor Malhotra’s statement reinforces the government and RBI’s long-standing approach of keeping UPI a zero-cost platform to encourage widespread adoption of digital payments across India.

The move comes as UPI continues to hit record transaction volumes, solidifying India’s position as the world’s largest real-time payments market.

While UPI has largely remained free, there has been ongoing debate about the sustainability of this model.

Malhotra previously acknowledged that “there are costs (associated with UPI transactions), and they need to be paid for by someone,” suggesting that the free model may not last indefinitely.

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

Under current regulations, including the Payment and Settlement Systems Act, UPI platforms cannot charge fees for users or merchants, aligning with the government’s push to promote a cashless, digital economy.

The RBI and government aim to maintain this framework to ensure the continued growth of India’s digital payments ecosystem.

With UPI remaining a zero-cost service for now, the sector can expect sustained adoption and a stable environment for fintech players and users alike.

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