Will UPI payments be charged? Reserve Bank of India (RBI) Governor Sanjay Malhotra said on Wednesday that there is currently no proposal to impose any charges on. The Governor also informed that the central bank is examining a proposal to remotely lock mobile phones purchased on credit in case of non-payment of EMI. Governor Malhotra was speaking to the media at the post-monetary policy press conference. When asked about imposing charges on UPI transactions, he categorically stated that there is no such proposal before him.
This is not the first time questions have been raised about UPI charges. The Governor had to clarify this at the previous post-policy conference as well. At that time, he said, “I never said that UPI will always be free. I only said that UPI transactions incur a cost, and someone will have to pay for it. Who will pay is important, but more importantly, someone must bear the cost. This is crucial for the sustainability of the model.”
Let us tell you that according to RBI data, UPI processed 20 billion transactions in August 2025, which shows a growth of 34% on an annual basis.
Additionally, the issue of locking mobile phone devices in the event of non-payment of EMIs was also discussed, to which the RBI Deputy Governor issued a statement. He stated that the RBI is considering another proposal. This proposal relates to mobile phones purchased on credit. Banks could be allowed to remotely lock such mobile phones if a customer defaults on EMI payments.
In his statement, M. Rajeshwar Rao said (via NDTV), “As the Governor mentioned, the issue of digital locking is under consideration. It has both pros and cons in balancing customer rights, data privacy, and the needs of creditors. We are studying this and will decide in due course.”
FAQs
Q1. Is there any proposal to levy charges on UPI transactions?
No, RBI Governor Sanjay Malhotra clearly stated that there is no such proposal at present.
Q2. What did the RBI Governor clarify regarding UPI?
The Governor stated that UPI transactions incur costs and someone will have to pay for them, but there are currently no plans to impose charges.
Q3.What was the volume of UPI transactions in August 2025?
According to RBI data, UPI processed 20 billion transactions in August 2025, a 34% year-over-year increase.
Q4. What is the mobile phone digital locking proposal?
This proposal allows banks to remotely lock mobile phones purchased on credit in case of non-payment of EMIs.
Q5. What is the RBI’s stance on mobile phone digital locking?
The RBI has stated that this issue is under consideration and a balance is being worked out between customer rights, data privacy, and the needs of creditors.
Q6. When will a final decision be made on digital locking?
According to Deputy Governor M. Rajeshwar Rao, the issue is under study, and a decision will be taken later.