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New Indian Express
7 days ago
- Business
- New Indian Express
UPI isn't free even now, someone covering the cost already: RBI Governor Malhotra
MUMBAI: Reserve Bank governor Sanjay Malhotra has said that even as the all-popular unified payments interface (UPI) remains free for users, someone is already covering the cost, adding that the government will ultimately decide who bears the operational expenses. Addressing reporters at the customary post-policy presser here Wednesday when the RBI-MPC maintained the status quo on rates, the governor was responding to a query on his earlier statement on the issue. Asked whether charges such as the merchant discount rate (MDR) can be passed on to consumers, the governor clarified, 'I never said that UPI cannot stay free forever. What I said was there are costs (associated with UPI transactions), and they need to be paid for by someone." 'The question was whether charges like MDR would be passed on to consumers. I responded by saying that there are costs involved," he said about his previous statement at an industry event last week in the city. 'There are costs, and these costs have to be paid by someone. Who pays is important but not as important as the fact that someone is footing the bill,' the governor said, adding, 'My sense is that it is not free even now, and someone is paying for it. The government is subsidising it, but somewhere, the costs are being paid.' Introduced in 2016 by the RBI-run National Payments Corporation, the UPI currently accounts for about 80% of retail digital payments in the country and is a global success when it comes to digital payments. On average, UPI handles 30 crore transaction a month, which in July was 31 crore.
Times of Oman
21-07-2025
- Business
- Times of Oman
India tops global fast payments with UPI processing 18 billion transactions monthly
New Delhi : India has emerged as the global leader in fast payments, according to a recent note by the International Monetary Fund titled Growing Retail Digital Payments: The Value of Interoperability. At the heart of this transformation is the Unified Payments Interface, better known as UPI. Launched in 2016 by the National Payments Corporation of India, UPI has changed how people send and receive money in the country. It brings all your bank accounts together in one mobile app. One can transfer money instantly, pay merchants, or send funds to friends with just a few taps. Its appeal lies in its speed and ease of use. Today, UPI processes over 18 billion transactions every month in India. "This shift has taken India away from cash and card-based payments and pushed it towards a digital-first economy. Millions of individuals and small businesses now rely on UPI for safe and low-cost transactions. By making payments quick and accessible, UPI has become a powerful tool for financial inclusion," Press Information Bureau (PIB) said in its backgrounders series on Sunday. The scale of UPI today is remarkable. In June alone, it handled over Rs 24.03 lakh crore in payments. This was spread across 18.39 billion transactions. Compared to the same month last year, when there were 13.88 billion transactions, the growth is clear. There is an increase of about 32 per cent in just one year. The UPI system now serves 491 million individuals and 65 million merchants. It connects 675 banks on a single platform, allowing people to make payments easily without worrying about which bank they use. Today, UPI accounts for 85 per cent of all digital transactions in India. Its impact goes beyond national borders, powering nearly 50 per cent of global real-time digital payments. "These figures show more than just numbers. They reflect trust, convenience and speed. Every month, more individuals and businesses choose UPI for their payments. This growing use is a strong sign that India is moving steadily towards a cashless economy," the PIB report read. The success story does not stop at home. UPI is making its presence felt across borders. It is already live in seven countries, including the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, and Mauritius. Its entry into France is a milestone because it is UPI's first step into Europe. This allows Indians travelling or living there to pay seamlessly without the usual hassles of foreign transactions. According to the PIB backgrounder, India is also pushing for UPI to become a standard within the BRICS group, which now has six new member nations. "If this happens, it will improve remittances, boost financial inclusion and raise India's profile as a global tech leader in digital payments," it said. UPI's rise as the world's leading real-time payment system was not an accident. It is the result of years of planning and investment in digital infrastructure. Financial inclusion was the first big step. The Jan Dhan scheme opened bank accounts for millions who had never used formal banking before. As of July 9, over 55.83 crore accounts have been created. These accounts give people direct access to government benefits and a safe place to save money.
