RBI Governor Sanjay Malhotra Clarifies UPI transactions statement (X/TIN)
RBI Governor on UPI transactions: Reserve Bank Governor Sanjay Malhotra, who has earlier said that UPI cannot remain free forever and that someone else is now paying for it, has issued a clarification. In his clarification, he has now said that the digital payment app will remain a zero-cost platform to encourage its wider adoption.
In his response to the press, the RBI governor said, “Currently, we have no proposal to impose any charges on UPI transactions...”
And now in his clarification, he said, “UPI will continue to remain free for users under present policy.”
Notably, RBI governor's statement reinforces the government and the central bank’s move of keeping this digital payment tool a zero-cost platform for the adoption of digital payments across the nation.
He had earlier said, “there are costs (associated with UPI transactions), and they need to be paid for by someone,” and added that UPI may not stay free forever. However, today he stressed that no changes are being implemented now.
Notably, earlier this year, the finance ministry had also stated that in the Parliament that there was no plan to impose transaction charges on UPI.
These issue surfaced after the government had slashed the subsidy it had been allocating to UPI in the current fiscal. This subsidy helps cover the operational costs of UPI services, which are far greater than the subsidy amount, as UPI is designed to be a cost-free service for users.
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