RBI governor says small UPI fee unlikely to cut volumes
In short
RBI Governor Sanjay Malhotra said a small fee on some UPI merchant payments is unlikely to reduce transaction volumes. The fee takes effect from October 15 and applies to select merchant transactions above ₹2,000. Consumers will not be charged.
This matters because UPI is widely used for payments. The reporting does not say how merchants will respond or whether volumes change after the fee starts.
What the reporting says
RBI Governor Sanjay Malhotra said a small MDR on select UPI payments is unlikely to materially affect transaction volumes as the charge takes effect from October 15. The published summaries say the fee applies to select merchant UPI transactions above ₹2,000 and consumers will not be charged. The immediate consequence is unchanged volume expectations, but the reporting does not state any actual post-launch data or full fee details.
Why it matters
RBI Governor Sanjay Malhotra said a small MDR on select UPI merchant payments is unlikely to materially affect transaction volumes when the charge starts on October 15. The summaries say the fee applies above ₹2,000 and consumers will not be charged. The reporting also notes his broader comments on strong credit growth and asset quality in non-bank lenders, but gives no data showing any actual impact yet.