UPI Transactions To Remain Free For Now, RBI Governor Sanjay Malhotra Clears Speculation

Reserve Bank of India (RBI) Governor Sanjay Malhotra clarified on Wednesday, October 1, 2025, that no proposal has been presented to impose charges on Unified Payments Interface (UPI) transactions. 

Speaking at the post-Monetary Policy Committee (MPC) press conference, he addressed concerns about potential fees for UPI, India’s widely used digital payment system.

In July 2025, Governor Malhotra had sparked speculation about UPI costs during an event, stating, “UPI is accessible, cheap, secure, and sustainable — and it will be sustainable only if someone bears the cost.” 

This comment led to discussions about whether users might soon face charges for UPI transactions, given the platform’s rapid growth and increasing operational costs.

Addressing the issue, Malhotra emphasized the need for a sustainable financial model for UPI. “Who pays is important, but not so important than someone footing the bill. So, it is important for us for the sustainability of the model, that whether collectively or individually, someone pays,” he said.

He highlighted the challenge of balancing UPI’s accessibility with the costs of maintaining its infrastructure.

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Currently, the government subsidizes UPI transaction costs to keep the platform free for users, reinforcing the RBI’s commitment to promoting digital payments nationwide. 

Malhotra’s remarks come as UPI continues to break transaction records, solidifying India’s position as the global leader in real-time payments. 

The RBI and the government aim to ensure UPI remains cost-free to drive wider adoption, while acknowledging the need to address the long-term financial sustainability of the system.