UPI transactions may end free service; RBI Governor clarifies stance

RBI may end free service of Google Pay, PhonePe etc. UPI transactions need a stable funding model, said RBI Governor Sanjay Malhotra. Malhotra added that the process of conducting UPI transactions incurs costs.

UPI transactions were never said to be free forever. There are costs involved in the process of conducting UPI transactions. Someone will have to bear them. If UPI transactions are to continue in the long run, the RBI Governor clarified that its costs will have to be borne collectively or individually.

India's digital payment technology UPI has surpassed Visa globally, according to recent IMF figures. 85 percent of digital payments in India and about 60 percent globally are made through UPI. The report says that more than 640 million transactions are made through UPI every day in India.