RBI Governor Confirms No Plans to Charge for UPI Transactions While Considering Digital Enforcement for Credit Purchases

RBI Governor Sanjay Malhotra has confirmed there is no proposal to introduce charges on UPI transactions despite their significant increase in volume.

During a post-monetary policy press conference on Wednesday, Governor Malhotra addressed concerns about potential UPI transaction fees, stating clearly: "Are there going to be charges on UPI? Well, there is no proposal before us."

The central bank is also examining a proposal regarding digital enforcement measures for credit purchases. This would potentially allow lenders to remotely lock mobile phones purchased on credit when borrowers default on EMI payments.

RBI Deputy Governor M Rajeshwar Rao elaborated that the digital locking proposal is under careful review, noting, "There are pros and cons on both sides in terms of balancing customer rights and requirements, data privacy, and creditors' requirements. We are examining the issue and will take a view at a later point in time."

The press conference covered various additional economic matters. Governor Malhotra indicated that inflation has decreased considerably, creating room for monetary easing. He also addressed the rupee's depreciation against the US dollar, clarifying that the RBI doesn't target specific levels but works to prevent excessive volatility.

On economic growth prospects, Malhotra expressed confidence that India's high GDP growth trajectory will continue with price stability, and anticipated an increase in private capital expenditure. The RBI has raised its GDP growth projection for the current fiscal year from 6.5 percent to 6.8 percent, citing strong economic performance in the first half of 2025-26.