UPI to Remain Free, RBI Assures; Paytm Shares Jump
The Reserve Bank of India (RBI) has confirmed that the Unified Payments Interface (UPI) will continue to remain free for users, reassuring millions of digital payment enthusiasts and fintech investors. The announcement came from RBI Governor Sanjay Malhotra, who emphasized the central bank’s commitment to promoting digital payments while maintaining affordability and accessibility.
Following the statement, shares of Paytm witnessed a notable surge, jumping over 5% in early trading as investor confidence was buoyed by the news. Paytm, one of India’s leading digital payment platforms, is a major beneficiary of UPI adoption and had faced market concerns about potential transaction charges being introduced.
Governor Malhotra highlighted that UPI has become a backbone of India’s digital economy, facilitating seamless, instant, and secure payments across the country. “UPI will continue to be free of any transaction charges for users. Our aim is to encourage cashless payments and financial inclusion,” he stated.
The RBI’s assurance comes amid rapid growth in digital payments, with UPI transactions crossing new milestones this year. Analysts note that keeping UPI free ensures continued user adoption, particularly among small merchants, rural consumers, and first-time digital payment users. It also helps fintech companies expand their user base and innovate without worrying about regulatory changes affecting transaction costs.
Industry experts predict that the move will further accelerate UPI usage and strengthen India’s position as a global leader in digital payments. Companies like Paytm, PhonePe, and Google Pay are expected to see increased transaction volumes, while banks benefit from a rise in customer engagement and digital banking adoption.
The RBI’s decision reinforces India’s commitment to a cashless economy, supporting fintech growth while safeguarding consumer interests. By keeping UPI transactions free, the central bank ensures that digital payments remain accessible, secure, and convenient for all segments of society.
With Paytm’s stock rallying in response, the announcement has also sparked optimism among investors that India’s fintech sector could see renewed growth and innovation, solidifying the country’s leadership in the global digital payments ecosystem.
