No UPI fees for now, says RBI: Digital payments to stay zero-cost under current rule
“There is no change. UPI remains free under the current policy,” Malhotra clarified, responding to questions about earlier comments suggesting that UPI's zero-cost model might not be sustainable in the long run.
- Oct 1, 2025,
- Updated Oct 1, 2025 1:22 PM IST
UPI transactions will continue to remain free for users, confirmed RBI Governor Sanjay Malhotra on Wednesday, quelling speculation over potential charges on the country’s most widely used digital payment system.
Speaking at the post-policy press conference, Malhotra said the Reserve Bank of India has no proposal to impose fees on UPI payments, maintaining the government’s long-standing stance of keeping digital payments accessible to all.
“There is no change. UPI remains free under the current policy,” Malhotra clarified, responding to questions about earlier comments suggesting that UPI's zero-cost model might not be sustainable in the long run.
His assurance comes as UPI continues to break records, reinforcing India’s global lead in real-time digital payments. The platform has seen exponential growth across urban and rural segments, supported by zero-cost transactions and widespread smartphone penetration.
The statement sparked an immediate response in the markets, with Paytm (One 97 Communications) shares rising over 2% intraday, hitting ₹1,147 on the NSE following the Governor’s remarks.
Though Malhotra had earlier acknowledged that UPI transactions “come with costs that someone has to bear,” his latest remarks confirm that no user-facing charges are on the table at present.
Under current RBI guidelines and the Payment and Settlement Systems Act, both users and merchants are shielded from fees on UPI transactions. The aim, as reiterated by Malhotra, is to continue driving adoption and supporting India’s digital payment infrastructure without burdening consumers.
UPI transactions will continue to remain free for users, confirmed RBI Governor Sanjay Malhotra on Wednesday, quelling speculation over potential charges on the country’s most widely used digital payment system.
Speaking at the post-policy press conference, Malhotra said the Reserve Bank of India has no proposal to impose fees on UPI payments, maintaining the government’s long-standing stance of keeping digital payments accessible to all.
“There is no change. UPI remains free under the current policy,” Malhotra clarified, responding to questions about earlier comments suggesting that UPI's zero-cost model might not be sustainable in the long run.
His assurance comes as UPI continues to break records, reinforcing India’s global lead in real-time digital payments. The platform has seen exponential growth across urban and rural segments, supported by zero-cost transactions and widespread smartphone penetration.
The statement sparked an immediate response in the markets, with Paytm (One 97 Communications) shares rising over 2% intraday, hitting ₹1,147 on the NSE following the Governor’s remarks.
Though Malhotra had earlier acknowledged that UPI transactions “come with costs that someone has to bear,” his latest remarks confirm that no user-facing charges are on the table at present.
Under current RBI guidelines and the Payment and Settlement Systems Act, both users and merchants are shielded from fees on UPI transactions. The aim, as reiterated by Malhotra, is to continue driving adoption and supporting India’s digital payment infrastructure without burdening consumers.