Archive · 25 Jul 2025
RBI Governor Considers Financial Viability for UPI, Inflation Under Control
Imagine UPI payments like free rides on a bus.
Right now, the government is paying for everyone's tickets.
But the RBI Governor thinks maybe users or someone else needs to start paying.
This is because keeping it free forever might not be sustainable.
The Governor also says the 'battle against inflation is won' which means prices are now under control but they will keep it under check and focus on improving the economy.
The central bank may cut the interest rates.
The RBI will also review banking rules to make them simpler.
RBI Governor signals potential changes to free UPI transactions.
UPI may need to become financially sustainable, according to the Governor.
The government currently subsidizes UPI costs for banks and other stakeholders.
RBI will prioritize price stability while boosting growth.
The monetary policy committee will be guided by revised inflation outlook.
- Who
- RBI Governor Sanjay Malhotra
- What
- RBI considering financial sustainability for UPI and prioritizing price stability.
- When
- July 25, 2025, ahead of the central bank’s monetary policy meeting on August 6.
- Where
- Mumbai, India
- Why
- To ensure the long-term viability of UPI and to maintain price stability while boosting growth.
Merchants
Consumers
MDR
Merchants
May need to start paying MDR.
Consumers
May not have to pay MDR.
- UPI Transactions
- 18.39 billion in June
- UPI Payment Value
- Rs 24.03 lakh crore in June
- UPI market share
- 85% of digital transactions in India
- Inflation forecast
- 3.7 per cent (fiscal year)
- Benchmark Repurchase Rate Cut
- 100 basis points
