D. Subbarao suggests charging certain UPI transactions to cover costs
D. Subbarao, former Reserve Bank of India governor, said it might be time to add charges on certain UPI transactions to help cover the real costs of running the system.
Speaking at a book launch, he pointed out that while sending money via UPI is free right now, banks still have bills to pay behind the scenes.
Subbarao proposes fees for high-value UPI
Subbarao suggested starting with fees on high-value UPI payments so everyday users and those in the informal sector aren't hit hard.
He also warned that if banks keep offering free UPI, they might make up for it by lowering interest rates on fixed deposits or raising loan costs.
Subbarao: Jan Dhan women underuse UPI
He highlighted that even though women hold one-half of Jan Dhan accounts, they make less than one-quarter of UPI transactions, often due to privacy concerns or lack of confidence using digital tools.
Subbarao said true financial inclusion means more than just opening accounts; he called for smarter use of data and AI so banks can better support all borrowers.