In a major relief for millions of digital payment users, Reserve Bank of India (RBI) Governor Sanjay Malhotra announced on Wednesday that there are no plans to impose charges on Unified Payments Interface (UPI) transactions. The statement, made during a post-monetary policy press conference in Mumbai, puts to rest speculations about potential fees on the wildly popular payment system, which has seen explosive growth in recent years.
Addressing concerns about the soaring volume of UPI transactions, Malhotra was unequivocal: "Is there going to be charges on UPI? Well, there is no proposal before us." The announcement is a boon for consumers and businesses alike, as UPI remains a cornerstone of India’s push toward a cashless economy, facilitating seamless, low-cost transactions across the country.
The press conference also touched on other pressing financial matters. Malhotra revealed that the RBI is exploring a controversial proposal to allow lenders to remotely lock mobile phones purchased on credit in cases of EMI defaults. This digital locking mechanism, still under review, has sparked debates over balancing customer rights, data privacy, and creditors’ interests. Deputy Governor M Rajeshwar Rao elaborated, noting that the RBI is carefully weighing the pros and cons before making a final decision. "We are examining the issue and will take a view at a later point," Rao said.
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On the monetary policy front, Malhotra hinted at potential rate cuts in future policies, citing a significant drop in inflation that provides room for monetary easing. He also addressed concerns about the rupee’s depreciation against the US dollar, clarifying that the RBI does not target specific exchange rate levels but focuses on curbing excessive volatility.
Looking ahead, Malhotra expressed optimism about India’s economic trajectory, projecting a robust GDP growth of 6.8% for the 2025-26 fiscal year, up from the earlier estimate of 6.5%. The upward revision reflects strong economic activity in the first half of the year, with expectations of sustained growth, price stability, and a pickup in private capital expenditure.
As India navigates global economic challenges, the RBI’s policies continue to prioritize stability and growth, offering a steady hand for the nation’s financial future.
Also Read: Big Relief for No-Frills Account Holders: RBI Allows Free Digital Banking Access