Reserve Bank of India (RBI) Governor Sanjay Malhotra confirmed on Wednesday that there is no proposal to impose charges on UPI (Unified Payments Interface) transactions. He made this statement during a press conference held after the RBI’s monetary policy announcement.

Responding to growing speculation that UPI services might soon attract fees due to their rising usage, Malhotra clarified, “Are there going to be charges on UPI? Well, there is no proposal before us.” This statement reassures millions of users who depend on UPI for daily digital payments.

The governor also said that the central bank is examining a proposal that would allow banks and lenders to remotely lock mobile phones purchased on credit if the buyer fails to pay EMIs. This would act as a security measure for lenders and help reduce loan defaults.

RBI Deputy Governor M Rajeshwar Rao added that this proposal is still being studied carefully. He said the RBI is weighing both the benefits and concerns, especially regarding customer rights, data privacy, and fair usage. A final decision will be taken later.

Inflation and growth update

Speaking about the economy, Malhotra said that inflation has reduced significantly, which gives room for the RBI to consider interest rate cuts in the future. When asked about the weakening of the Indian rupee against the US dollar, he clarified that the RBI does not target a specific exchange rate but works to control sudden fluctuations.

GDP growth estimate raised

The RBI has revised India’s GDP growth projection to 6.8% for the current financial year, up from the earlier estimate of 6.5%. According to Malhotra, strong economic activity in the first half of 2025-26 has boosted confidence. He also expressed hope that private sector investments will increase and the growth momentum will continue.