Former RBI Governor Subbarao backs calibrated UPI charges for high-value payments
D Subbarao said a phased charge on high-value UPI transactions could help address banks’ payment-processing costs and support innovation, while preserving low-value payments. He also flagged a gender gap in UPI usage and called for stronger data-led credit access.
What happened
Unified Payments Interface (UPI) · Former RBI Governor D Subbarao advocated calibrated user charges for high-value UPI transactions, saying free payments shift
Key facts
- Women hold about half of Jan Dhan Yojana accounts
- Women conduct less than a quarter of UPI transactions
What changed
Former RBI Governor D Subbarao advocated calibrated user charges for high-value UPI transactions, saying free payments shift costs to banks and may curb innovation. He also highlighted gender disparities in UPI use and the need for data-led credit access.
Why this matters
Retailers should prepare for potential payment-cost exposure on high-value UPI transactions while preserving low-ticket UPI adoption through pricing, tender-routing and checkout strategy reviews.
What to watch
- RBI, Ministry of Finance or NPCI consultation language on UPI MDR, interchange, subsidy renewal or payment-system cost recovery.
- Any proposal defining a high-value threshold, such as transaction-value caps, monthly merchant-volume bands or category-specific treatment.
- Changes in government reimbursement or incentive schemes supporting UPI transactions and payment infrastructure.
- Bank and payment-aggregator disclosures citing UPI processing losses, rising infrastructure costs or demands for merchant-funded pricing.
- Large retailers, marketplaces or quick-commerce platforms introducing differentiated offers by payment method or minimum-order-value rules.