Reserve Bank of India (RBI) Governor Sanjay Malhotra recently confirmed that there are no current plans to introduce charges on UPI (Unified Payments Interface) transactions. This assurance comes amidst a significant rise in digital payment adoption across the country.
Addressing queries at a post-monetary policy press conference in Mumbai on October 1, 2025, Governor Malhotra explicitly stated, "Is there going to be charges on UPI? Well, there is no proposal before us." This statement aims to quell public concerns about potential costs associated with the popular digital payment method.
However, the Governor also disclosed that the central bank is actively reviewing a proposal that would enable lenders to remotely lock mobile phones purchased on credit. This measure would be invoked if borrowers default on their EMI payments.
RBI Deputy Governor M. Rajeshwar Rao further elaborated on this, explaining that the central bank is carefully considering both the advantages and disadvantages of such a digital locking mechanism. "The issue of digital locking is under examination… in terms of balancing customer rights and requirements, data privacy, and creditors’ requirements. So, we are examining the issue, we will take a view at a later point in time," Rao clarified.
During the comprehensive press conference, Governor Malhotra and other Deputy Governors also addressed various other critical economic topics. They discussed the potential for future interest rate cuts, noting that inflation has dropped considerably, creating room for monetary easing.
Regarding the Indian Rupee’s value against the U.S. dollar, Governor Malhotra reiterated that the RBI does not target specific exchange rate levels or bands. Instead, its primary focus is to mitigate excessive volatility in the currency market.
The Governor concluded the conference on an optimistic note, expressing confidence that India’s robust GDP growth trajectory would continue, supported by price stability. He also anticipates a significant upturn in private capital expenditure, which would further fuel economic expansion.
This positive outlook is reflected in the RBI’s revised GDP growth projection, which has been increased to 6.8% for the current fiscal year, up from the earlier estimate of 6.5%, attributed to strong economic performance in the first half of 2025-26.