RBI Governor Signals Potential Merchant Fees on UPI Transactions

RBI Governor Sanjay Malhotra stated that the cost of maintaining UPI transactions must be covered, signaling a potential shift away from the current free-to-use model.

A new Bill introduced in Parliament seeks to empower banks and UPI companies to levy charges on merchants for specific transactions.

While UPI payments have remained free since inception, there are concerns that merchants may pass these new costs directly to consumers.