Consumers pick up indirect UPI costs, RBI emphasizes infrastructure

Business Aug 06, 2026

Turns out, even though merchants don't pay direct fees for UPI payments, consumers are still picking up the tab in other ways.

RBI Governor Sanjay Malhotra explained that improving UPI's infrastructure is the main focus right now, not charging new fees.

Government mulls merchant fees over ₹2,000

The government is considering changing rules to allow merchant fees on bigger transactions (think anything over ₹2,000).

But Malhotra called it "very premature" to talk about adding fees and stressed that keeping UPI efficient and sustainable matters most.

Banks have handed over much of the payment game to apps like PhonePe and Google Pay, so long-term investment is key if UPI wants to hit its ambitious target of 800 million daily transactions.