RBI clarifies: No charges planned for UPI transactions

The Reserve Bank of India has clarified that there are no plans at present to impose charges on UPI transactions. RBI Governor Sanjay Malhotra confirmed that the central bank has not contemplated introducing any fees for transactions made via UPI platforms.

RBI kept the policy repo rate unchanged on Wednesday at 5.5 per cent for the second straight review, citing tariff-related uncertainties that could weigh on economic growth in the latter half of the fiscal year.

Announcing the central bank’s fourth bi-monthly monetary policy, RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) voted unanimously to maintain the current rate with a neutral stance.

While GST rate rationalisation will have a sobering impact on consumption and growth, tariff related developments may slow down the economic expansion in the second half of the current fiscal, he said.

Since February 2025, the RBI has reduced the policy rate by 100 basis points. In its previous policy review in June, it had trimmed the repo rate by 50 basis points to 5.5 per cent.

The central bank has been tasked by the government to ensure that Consumer Price Index (CPI) based retail inflation remains at 4 per cent with a margin of 2 per cent on either side.

Based on the recommendation of the MPC, the RBI reduced the repo rate by 25 bps each in February and April, and 50 basis points in June, amidst easing retail inflation.