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Reserve Bank of India (RBI) Governor Sanjay Malhotra on Wednesday reiterated that the central bank is not considering any charges on Unified Payments Interface (UPI) transactions.
Speaking at the post-Monetary Policy Committee (MPC) press conference, Malhotra emphasized that while UPI is currently subsidised by the government to remain a zero-cost platform, "no proposal to impose charges is under consideration at present."
His comments come amid speculation about the sustainability of UPI’s free-to-use model, which has powered record growth in digital transactions. Malhotra clarified that although operational costs exist, the system will continue without charges under the current framework.
The Governor also addressed broader monetary policy and banking sector issues. The central bank kept the repo rate unchanged at 5.5% and retained its neutral stance, while revising FY26 GDP growth forecast to 6.8%. Malhotra noted that two MPC members had favoured shifting the stance to accommodative, though he described it as "forward guidance" rather than a liquidity signal.
On the banking sector, Malhotra said the RBI would continue consultations with stakeholders, aiming for "balanced, calibrated measures" to promote stability and growth. He also underlined efforts to reduce reliance on cross-currencies, highlighting work with the Indonesian Rupiah and UAE Dirham.
UPI-linked stocks saw an immediate impact. Paytm shares rose over 2% to ₹1,147 on the NSE after Malhotra’s assurance.
Speaking at the post-Monetary Policy Committee (MPC) press conference, Malhotra emphasized that while UPI is currently subsidised by the government to remain a zero-cost platform, "no proposal to impose charges is under consideration at present."
His comments come amid speculation about the sustainability of UPI’s free-to-use model, which has powered record growth in digital transactions. Malhotra clarified that although operational costs exist, the system will continue without charges under the current framework.
The Governor also addressed broader monetary policy and banking sector issues. The central bank kept the repo rate unchanged at 5.5% and retained its neutral stance, while revising FY26 GDP growth forecast to 6.8%. Malhotra noted that two MPC members had favoured shifting the stance to accommodative, though he described it as "forward guidance" rather than a liquidity signal.
On the banking sector, Malhotra said the RBI would continue consultations with stakeholders, aiming for "balanced, calibrated measures" to promote stability and growth. He also underlined efforts to reduce reliance on cross-currencies, highlighting work with the Indonesian Rupiah and UAE Dirham.
UPI-linked stocks saw an immediate impact. Paytm shares rose over 2% to ₹1,147 on the NSE after Malhotra’s assurance.
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