The Reserve Bank of India has no current proposal to impose charges on UPI transactions, Governor Sanjay Malhotra announced Wednesday during the post-policy presser. Addressing concerns about possible charges on digital payments, he clarified that UPI will continue to remain free for users under present policy.
Governor Malhotra's statement reinforces the government and RBI’s stance of keeping UPI a zero-cost platform to encourage wider adoption of digital payments across the country. The statement comes at a time when UPI transactions continue to scale record highs, cementing India’s position as the world’s largest real-time payments market.
Paytm (One 97 Communications) share price jumped over 2% shortly after the Governor's statement, and was trading at Rs 1,147 on NSE in the early afternoon session.
Malhotra’s statement comes amid renewed speculation about the sustainability of UPI’s zero-cost model. He previously noted that “there are costs (associated with UPI transactions), and they need to be paid for by someone,” and acknowledged that UPI may not stay free forever. However, today he emphasized that no changes are being introduced now.
Across the ecosystem, UPI has long been a largely free platform, with the government and RBI aiming to promote digital payments. The Payment and Settlement Systems Act and related guidelines currently prohibit charging fees from users or merchants for UPI transactions.
In parliament earlier this year, the finance ministry also clarified there is no current plan to impose UPI transaction charges, responding to public concern after earlier comments.
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