UPI payments will stay free, no user charges planned: RBI

The Reserve Bank of India (RBI) has reaffirmed that Unified Payments Interface (UPI) transactions will continue to be free for users under the current policy, dismissing recent speculation that digital payments might soon attract charges. 

RBI Governor Sanjay Malhotra clarified during a post-policy press conference that there is no plan to impose fees on UPI transactions, ensuring the continuity of India’s zero-cost payments model.

Operational Costs Involved

Addressing concerns over the sustainability of UPI’s free structure, Governor Malhotra emphasised that while there are operational costs involved in running the nation’s most widely used digital payment system, no change is being introduced now that would impact users or merchants.

Also Read: RBI slashes repo rate by 25 bps amid strong growth, cooling inflation

The assurance has been welcomed by fintech firms and users alike, with UPI’s position as India’s leading real-time payment platform remaining intact. India processes billions of UPI transactions every month, and the service has been a cornerstone of the country’s digital economy, driving financial inclusion and reducing the reliance on cash.

Keeping Digital Payments Free

Market reaction was noticeable, with technology and payments stocks responding positively to the news that everyday users will not bear transaction costs. The clarity from the RBI also comes amid other policy discussions around digital payments, including subsidy allocations that support the ecosystem’s cost structure.

Despite past remarks about the eventual need to develop a sustainable financial model for UPI, the central bank and government’s current stance remains committed to keeping digital payments accessible and free at the point of use.

For now, users and merchants can continue using UPI without worrying about charges — a key pillar in India’s push toward a less-cash, highly digital economy.