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RBI governor says consumers already bear UPI costs
Times of India··6 Aug
RBI Governor Sanjay Malhotra said consumers already bear UPI costs through the broader economy even when merchants face no explicit fee. He called enabling merchant charges very premature and said the focus remains strengthening payments infrastructure. The goal cited is about 800 million UPI transactions a day. Reports discuss possible merchant fees on UPI above Rs 2,000.
Prism
What It Means For You
- UPI users can note the governor said any merchant-fee decision is still premature while volume targets rise.
- Merchants watching fee debates can track talk of possible charges on larger UPI payments if rules change.
- Anyone using PhonePe or Google Pay can see RBI framing UPI as a public good whose costs land somewhere in the economy.
What's Happening
- RBI Governor Sanjay Malhotra said consumers already bear UPI costs indirectly through the broader economy.
- He called enabling merchant fees on UPI very premature and prioritised payments infrastructure investment.
- Reports say government proposals may allow merchant fees on UPI transactions above Rs 2,000.
Why Zero Merchant Fees Still Have A Cost
- MDR-free UPI shifted processing costs onto banks and the wider payments stack even when shoppers pay no fee at checkout.
- Malhotra linked sustained UPI growth to revenue streams that can fund roughly 800 million daily transactions.
- Banks ceding payment space to fintechs is part of the same debate over who funds free digital payments.
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