No plan to impose any charges on UPI transactions: RBI Guv Malhotra

RBI Governor Sanjay Malhotra said the central bank is not considering imposing any charges on UPI transactions or the platforms

Reserve Bank of India (RBI) Governor Sanjay Malhotra on Wednesday clarified that the central bank is not considering imposing any charges on Unified Payments Interface (UPI) transactions.

 

Malhotra made these remarks at the post-Monetary Policy Committee (MPC) conference. The RBI governor has previously also issued a clarification regarding the charges on UPI transactions, saying, "I never said that UPI can stay free forever. What I said was there are costs (associated with UPI transactions), and they need to be paid for by someone."

 

Malhotra, on several occasions, has raised concerns over the sustainability of UPI's zero-cost framework. Speaking at an event in July, he said, "This (UPI) is an important infrastructure. The government has taken the view that it should be available free, and the government is subsidising it. And I would say it has borne good fruits."

 

Inflation down considerably

 

In the post-policy conference, Malhotra said inflation has reduced considerably since June by one per cent. Commenting on growth, he noted that while it did surprise on the upside in Q1, there is a slight downward revision expected in Q3 and Q4, and even in the next year. This revision is on account of the 50 per cent tariff imposed by US President Donald Trump.

 

The governor further said the central bank is hopeful of continuing with a very high growth trajectory while maintaining price stability.

Change of stance from neutral to accommodative

 

Commenting on whether there is a chance of changing the monetary policy stance from neutral to accommodative, Malhotra noted that two members wanted a change, adding that it is more of a forward guidance and has nothing to do with liquidity.

RBI Guv on measures for banking sector

 

The RBI governor said the central bank will hold consultations on banking measures with stakeholders. On the whole, all measures taken, and those to be taken as required, will aim to promote stability while also improving commitments and enhancing growth. 

 

"We have taken balanced, calibrated, and well-thought-out measures for the banking sector. The aim will be to promote stability of the system while enhancing the growth of the economy," said Malhotra.

RBI aims to cut reliance on cross-currencies

 

Commenting on the aim to cut reliance on cross-currencies, the RBI governor said, "We are currently looking at the Indonesian Rupiah and the UAE Dirham, among others, and will continue to add more gradually."

RBI keeps repo rate unchanged

 

The central bank left the repo rate unchanged at 5.5 per cent and revised the real Gross Domestic Product (GDP) growth forecast for the financial year 2025-26 (FY26) to 6.8 per cent. The stance was also unchanged at neutral.