UPI transactions levying charges: The Reserve Bank of India (RBI) has indicated that the era of completely free digital transactions in the country may now be over. The Unified Payments Interface (UPI), which has become the backbone of Digital India, may be setting new records every month, but the RBI has become serious about the cost behind it and the increasing pressure on the infrastructure. RBI Governor Sanjay Malhotra has shed light on many things while putting the reason behind this possible change in front of everyone.
Govt is subsidizing banks and other stakeholders
Governor Sanjay Malhotra recently told media, "Payments and money are the lifeline. We need a universal and efficient system. Currently there is no charge on UPI services. The government is subsidizing banks and other stakeholders,"
He further said, "Any important structure is meaningful only when it benefits. If a service is to be made long-term, then its cost should be paid either collectively or by the user."
Not possible to maintain free service on such a large scale
The level of UPI transactions is constantly increasing, which is putting a lot of pressure on its backend infrastructure. This system is managed by banks, payment service providers and National Payments Corporation of India (NPCI) together. The governor said that it is not possible to maintain free service on such a large scale for a long time which can also cause problems in the coming time.
Governor Malhotra made it clear that at present no fee is charged on UPI transactions, but to maintain this system, the government is giving financial assistance to banks and companies. He believes that this model cannot last forever and the possibility of levying charges on UPI in the future cannot be ruled out.