📷 Image: Wikimedia Commons / Ministry of Finance of India
Business
RBI Governor says new UPI fees will not curb transaction volumes
✍️ Telangana Today
🗓 07 Oct 2026, 03:46 PM
👁 12
The Reserve Bank of India’s governor stated that the recently announced charges on Unified Payments Interface transactions are not expected to reduce the number of payments processed.
The Reserve Bank of India (RBI) has introduced a modest fee structure for certain Unified Payments Interface (UPI) transactions, aiming to offset the costs of maintaining the platform. The move marks the first time the central bank has levied a direct charge on UPI payments, which have grown to billions of transactions daily.
Speaking at a press briefing, RBI Governor Shaktikanta Das said the new charges are unlikely to dampen the overall volume of digital payments. He highlighted that the fee applies only to specific high‑value or merchant‑driven transactions, while the majority of person‑to‑person transfers will remain free.
Analysts note that the RBI’s confidence stems from the entrenched user base and the convenience of UPI, which continues to attract both urban and rural consumers. Early market responses suggest that merchants are adjusting to the cost without significant price pass‑through, and the platform’s growth trajectory is expected to stay on course.
The central bank will monitor transaction patterns closely over the coming months to ensure that the fee structure does not create unintended barriers for small businesses or low‑income users.
Speaking at a press briefing, RBI Governor Shaktikanta Das said the new charges are unlikely to dampen the overall volume of digital payments. He highlighted that the fee applies only to specific high‑value or merchant‑driven transactions, while the majority of person‑to‑person transfers will remain free.
Analysts note that the RBI’s confidence stems from the entrenched user base and the convenience of UPI, which continues to attract both urban and rural consumers. Early market responses suggest that merchants are adjusting to the cost without significant price pass‑through, and the platform’s growth trajectory is expected to stay on course.
The central bank will monitor transaction patterns closely over the coming months to ensure that the fee structure does not create unintended barriers for small businesses or low‑income users.