RBI flags UPI’s indirect costs as merchant-fee debate resurfaces
RBI Governor Sanjay Malhotra said consumers already bear UPI transaction costs indirectly, while calling merchant-fee decisions premature. The comments keep focus on potential fees for higher-value UPI payments, a possible cost and acceptance lever for retailers.
RBI Governor Sanjay Malhotra said UPI users indirectly bear transaction costs and called merchant-fee decisions premature. The RBI is prioritising infrastructure investment and adoption while government proposals may permit fees on UPI transactions above Rs 2,000.
Why this matters
RBI’s comments extend its recent signal that UPI needs funding but the merchant-fee debate is premature, alongside its focus on liquidity conditions and consumer-facing rates.
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