Shaktikanta Das Emphasizes Cost of UPI Operations, Credits Modi Government for Keeping It Free for Users
Published on: August 07, 2025
By: BTNI
Location: Mumbai, India
Reserve Bank of India (RBI) Governor Shaktikanta Das has clarified misconceptions surrounding the Unified Payments Interface (UPI), stating that he never claimed UPI would remain free forever. Speaking at a press conference in Mumbai, Das emphasized that while UPI is currently free for users, it incurs significant operational costs that are being borne by certain stakeholders, primarily through government subsidies. “I never said UPI can’t remain free forever. There are costs, and it has to be paid by someone. It is not free even now. Someone is paying for it, and the government has subsidized it,” Das remarked.
The RBI Governor’s statement comes amid ongoing discussions about the sustainability of UPI’s zero-cost model for users. He highlighted that the Modi government has allocated over Rs. 8,000 crore to date to ensure that UPI transactions remain free for the public, a move that has fueled the platform’s widespread adoption across India. This substantial financial backing has enabled millions of users to conduct seamless, cashless transactions without incurring direct charges, positioning UPI as a cornerstone of India’s digital economy.
Das’s clarification addresses concerns raised by recent debates over potential transaction fees, with some stakeholders suggesting that the cost of maintaining UPI infrastructure could eventually be passed on to users. However, he underscored the government’s commitment to keeping the service accessible, particularly for small-scale transactions that drive financial inclusion. “The subsidy reflects the government’s priority to promote digital payments while ensuring affordability,” Das added.
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Industry experts have lauded the government’s investment in UPI, noting that it has revolutionized digital payments in India, with billions of transactions processed monthly. The platform’s success has also drawn global attention, positioning India as a leader in fintech innovation. However, questions about long-term funding and cost-sharing models persist, with Das indicating that discussions with banks, payment providers, and other stakeholders are ongoing to ensure UPI’s sustainability.
The RBI Governor’s remarks have sparked renewed appreciation for the government’s efforts to maintain UPI as a free service for users, while also igniting a broader conversation about the future of digital payments in India. As UPI continues to transform the financial landscape, the focus remains on balancing accessibility with the economic realities of maintaining such a robust system.
