New Delhi: The era of free UPI transactions could soon come to an end. In a significant statement, RBI Deputy Governor Sanjay Malhotra hinted that users of digital payment platforms like PhonePe and Google Pay may soon have to pay for UPI services, as the government considers a sustainable funding model for the booming payment system.
“UPI will not remain free forever. Every transaction comes with a cost, and someone has to bear it. For long-term sustainability, these costs must be covered—whether by users, service providers, or both,” said Malhotra.
The remarks signal a possible shift in India’s digital payment landscape, which has thrived on zero-cost UPI transfers. But with operational and infrastructure expenses mounting, the RBI is exploring ways to share the burden.
India’s UPI system, now a global leader in digital transactions, has even surpassed Visa in volume, according to the IMF. In India, UPI accounts for 85% of all digital payments, and 60% globally.
The scale is staggering: over 640 million transactions happen daily, and in June 2025 alone, UPI facilitated more than 18.39 billion transactions, moving a whopping ₹24 lakh crore in value.
As usage grows, the pressure to monetize and maintain the system increases. While no official fee structure has been announced yet, consumers may soon see a change in how they pay—and how much.
