UPI Payments to Be Charged? RBI Governor Clears the Air

During the post-Monetary Policy Committee (MPC) press conference, Reserve Bank of India (RBI) Governor Sanjay Malhotra stated that there is currently no plan to impose charges on Unified Payments Interface (UPI) transactions. 

He highlighted that while UPI is free for users today, transaction costs do exist and must eventually be borne by someone for the system to remain sustainable.

RBI Governor’s Clarification

This is not the first time the Governor has addressed the issue. In earlier interactions, Malhotra clarified that he had never promised UPI would remain permanently free but had underlined the importance of ensuring the costs associated with the infrastructure are accounted for.

Concerns Around Sustainability

The RBI Governor has previously raised questions about the long-term sustainability of UPI’s zero-cost framework. Speaking at the Financial Express BFSI Summit in July 2025, he emphasised that UPI is a critical part of India’s payment ecosystem. He noted that the government currently subsidises transaction costs, which has allowed UPI to flourish and expand rapidly across the country.

According to RBI data, UPI processed 20 billion transactions in August 2025, marking a 34% year-on-year growth in volumes. Malhotra stressed that for UPI or any digital payment system to be sustainable, its costs must be covered whether by the government, financial institutions, or end-users.

The Road Ahead

For now, the government continues to absorb the costs, ensuring that UPI remains free for users. However, the RBI has made it clear that the focus should be on accessibility, affordability, security, and sustainability. The debate over who ultimately bears the costs may continue, but as of today, UPI transactions remain free for consumers.

Read More: UPI Payments: Navi and super.money Expand, Market Share for PhonePe, Google Pay Falls.

Conclusion

The RBI’s latest clarification offers relief to millions of digital payment users who feared potential charges on UPI. While the question of long-term sustainability remains, the current stance ensures continued ease of use for India’s rapidly growing digital payments ecosystem.

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