RBI possesses sufficient funds to cover UPI transaction costs without charging users
RBI Governor Sanjay Malhotra stated that "someone will have to pay the cost" for UPI transactions, which are currently free for merchants and customers, hinting at potential charges. However, an analysis by The Hindu reveals that the RBI itself has ample funds to cover these costs without imposing additional charges. The cost of running the UPI platform is estimated between ₹9,664-₹24,161 crore annually, which is 3-8.5% of the RBI's annual surplus transferred to the Union government. Despite a 425% growth in UPI transactions over five years, RBI's surplus transfers have grown by 857%, more than enough to cover the platform's operational costs.
Key Points
- RBI Governor indicated potential charges for UPI transactions, currently free for users and merchants.
- Analysis shows RBI's annual surplus is sufficient to cover UPI operational costs without new charges.
- The estimated annual cost of running UPI is a small fraction (3-8.5%) of RBI's surplus transferred to the government.
- RBI's surplus transfers have grown significantly (857%) over five years, outpacing UPI transaction growth (425%).
Exam Facts
- RBI Governor: Sanjay Malhotra.
- UPI transactions in 2025-26: 24,161.69 crore.
- Estimated cost per UPI transaction: ₹0.4-₹1.
- RBI surplus transferred to Union government (2025-26): ~₹2.9 lakh crore.
- Taxation and Other Laws (Amendment) Bill, 2026.
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