Both the government and the RBI aim to promote digital payments and make them more accessible across the country. This statement comes at a time when UPI continues to set new records and India has become the world’s largest real-time payments market.
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Reserve Bank of India (RBI) on Wednesday provided significant relief to digital payment users. RBI Governor Sanjay Malhotra clarified at a press conference after the monetary policy review that there is currently no proposal to levy any charges on UPI transactions. He stated that under the current policy, UPI will remain completely free. The aim of both the government and the RBI is to promote digital payments and make them more accessible across the country. This statement comes at a time when UPI is consistently setting new records and India has become the world’s largest real-time payments market.
What Governor Malhotra Said
Reserve Bank of India Governor Sanjay Malhotra said on Wednesday that there is no proposal to impose fees on UPI transactions. Asked about a proposal to levy fees on UPI transactions, Malhotra said there is no such proposal, citing a significant increase in UPI transactions. “Will there be a fee on UPI? We have no such proposal before us,” he said at a press conference after the monetary policy announcement. This announcement comes at a time when UPI is consistently hitting record levels and India has become the world’s largest real-time payments market. However, speculation has also intensified in the market regarding the sustainability of UPI’s zero-cost model.
A massive 78% cut in the UPI subsidy
It’s worth noting that the government recently announced a massive 78% cut in the UPI subsidy in the budget. The subsidy has been reduced to just ₹437 crore for FY26, compared to ₹2,000 crore in FY25 and ₹3,631 crore in FY24. However, Malhotra clarified that both the government and the RBI aim to maintain UPI as a zero-cost platform to make digital payments accessible to more people.
