RBI Governor Clarifies: No UPI Charges, EMI Phone Locking Under Review
On Wednesday, the Governor of the Reserve Bank of India (RBI), Sanjay Malhotra, asserted that there is no proposal regarding imposing any charge on UPI transactions.
The governor is currently analysing a proposal on whether to allow lenders to remotely lock mobile phones bought on credit in case of default in EMI payments. The Deputy Governor of RBI, M. Rajeshwar Rao, has said that they are examining both advantages and disadvantages of digitally locking phones when EMI is not paid.
Rao said, “The issue of digital locking is under examination, as the Governor has pointed out. There are pros and cons on both sides in terms of balancing customer rights and requirements, data privacy, and creditors’ requirements. So, we are examining the issue; we will…take a view at a later point in time.”
When asked if the government plans to start charging fees on UPI transactions, which have increased a lot, Malhotra said there is no such proposal. At the press conference, Malhotra and the other deputy governors answered several questions, including about the chances of a rate cut in upcoming policies and the fall in the value of the rupee.
The governor said that since inflation has fallen a lot, there is room to cut interest rates. On the falling rupee against the US dollar, he explained that the RBI does not aim for any fixed value but only works to control sudden big changes. Malhotra added that India’s strong GDP growth will continue with stable prices, and private companies will increase their investments.
He also emphasised that the Central Bank has increased its GDP growth forecast for this year to 6.8% (earlier it was 6.5%) because the economy performed well in the first half of the year 2025-26.
