The Reserve Bank of India has indicated that the days of complete free digital transactions could be coming to a close. With the Unified Payments Interface (UPI) reaching new milestones, RBI Governor Sanjay Malhotra emphasized the importance of ensuring the platform’s financial sustainability.
Malhotra noted that while UPI currently runs without any user charges, the government has been subsidizing banks and other participants to keep the system free.
“Payments and money are a lifeline,” he said while speaking at an event. “We need a universally efficient system. As of now, there are no charges. But the government is subsidizing various players such as banks and other stakeholders in the UPI payments system. Obviously, some costs have to be paid.”
Malhotra highlighted that while India's commitment to accessible, secure digital payments remains firm, long-term sustainability cannot be overlooked.
“Costs will have to be paid. Someone will have to bear the cost,” he added.
His remarks come amid a sharp rise in UPI usage. Daily transactions have reportedly doubled in just two years, soaring from 31 crores to over 60 crores.
Malhotra also clarified that the decision on whether to continue with the current zero MDR (merchant discount rate) policy ultimately lies with the government.
