Archive · 25 Jul 2025
RBI Governor: UPI Costs Need Coverage for Long-Term Sustainability
Imagine UPI, like a free road for sending money.
Right now, the government pays for it.
The RBI Governor says this might not last, as someone has to pay to keep it working.
UPI is super popular, used for almost all digital payments in India.
Because it's free, there's talk about who will pay in the future: users or businesses.
The government is currently paying a subsidy.
If costs aren't paid, it could be a problem.
RBI Governor states the cost of UPI must be covered for its sustainability.
UPI has seen a surge in transactions due to its free-of-charge nature.
Government currently subsidizes UPI costs, covering banks and stakeholders.
MDR is not applied on UPI transactions since January 2020.
The government has rejected suggestions of MDR on UPI transactions.
- Who
- RBI Governor Sanjay Malhotra
- What
- RBI Governor discusses the financial sustainability of UPI.
- When
- Friday
- Where
- Mumbai, India
- Why
- To address the long-term viability of the UPI system.
Concerns Over Financial Sustainability
Need for Sustainable Infrastructure
Financial Model
Concerns Over Financial Sustainability
Industry players have repeatedly flagged the model as financially unsustainable, due to the zero MDR policy.
Need for Sustainable Infrastructure
The government has rejected suggestions that MDR will be charged on UPI transactions.
- RBI Governor
- Sanjay Malhotra
- UPI Transactions in June
- 18.4 billion
- Government Subsidy (2023-24)
- Rs 3,268 crore
- MDR on UPI
- Not applied since January 2020
- Government Stance on MDR
- Rejected suggestions of MDR
