RBI says UPI users already absorb costs; merchant-fee call still pending

Governor Sanjay Malhotra said UPI costs are borne indirectly across the economy, while a possible fee on merchant payments above Rs 2,000 remains under consideration. RBI is prioritising infrastructure investment and wider adoption, with a target of 800 million daily UPI transactions.

— Filed Wed, 5 Aug, 2026, 21:51 IST · Source Times of India · Business · Updated

RBI Governor Sanjay Malhotra said UPI users indirectly bear transaction costs and that merchant-fee decisions remain premature. The government is considering allowing fees on UPI payments above Rs 2,000 while RBI prioritises infrastructure investment and wider adoption.

Why this matters

The comments extend recent focus on sustainable UPI funding, following signals on a proposed MDR reshaping merchant economics and possible MDR on high-value UPI payments.

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