Global Expansion Strategies for FinTechs in Emerging Markets: A Playbook for Leaders
2nd August 2025
Exclusive
The Impact of 5G on Fintech Services
Biometric Payments: The Next Big Trend in Secure Transactions
.jpg)
The Future of Payments: Trends Reshaping Transactions in 2025
The Evolution of Fintech Regulation: What’s Next?
What the Future Holds for Digital-Only Banks: Navigating the Next Era of Banking
The Role of Cryptocurrencies in Cross-Border Payments
How Open Banking is Shaping Financial Services Globally
Flipkart Gets a Lending Licence: A Bold Leap into Embedded Finance
Top Fintech Innovations Shaping 2025: The Future of Finance
The Rise of Contactless Payments: Benefits and Security Concerns
How AI is Transforming the Credit Scoring System
QR Codes and the Cashless Leap: Transforming India's Financial DNA
Subscribers: 108
RBI Governor Signals Possible Shift from Zero‑Fee UPI Model Amid Surge in Payments
News
26 July 2025
2 min read
5784
Reserve Bank of India Governor Sanjay Malhotra has flagged urgent concerns about the long‑term financial viability of UPI, urging policymakers to rethink its existing zero‑fee model amid ballooning transaction volumes. Addressing the Financial Express BFSI Summit, he highlighted that daily UPI transactions have doubled in just two years, soaring from roughly 31 crores to over 60 crores, and warned that the government can no longer indefinitely subsidize operational and infrastructure costs.
Malhotra acknowledged the success of the free‑transactions policy, stating that universal access and mass adoption "has borne good fruits". However, he emphasized that "some costs have to be paid", whether by the state, merchants, or eventual users, to maintain a sustainable, secure, and scalable payment infrastructure. While the question of reintroducing the Merchant Discount Rate (MDR) on high‑value or merchant transactions remains politically sensitive, he noted that the ultimate responsibility to continue the zero‑MDR regime rests with the government, which has so far resisted reinstating charges to preserve UPI as a “digital public good”.
In setting the broader context, Malhotra also stressed the need for forward‑looking policy frameworks—not just for payments but also in monetary policy and banking regulations—as India prepares for future challenges from cybersecurity to payment system resilience.
👍 0
💬 0
Read Next
News
Canara, Union Bank Roll Out Special Deposit Schemes Amid Growth Push
Blog
The Future of Fintech – Unlocking new opportunities
Blog
Global Expansion Strategies for FinTechs in Emerging Markets: A Playbook for Leaders
News
Indians Moving Funds from FDs to Stocks & Mutual Funds as Investment Trends Shift
Article
The Role of Cryptocurrencies in Cross-Border Payments
.jpg)
Analysis
🔍 Fintech in a Regulated World: Balancing Innovation with Oversight
×
Live Polls
Live Discussion
Topic Suggestion
Whom Do You Wish To Hear
Leave your opinion / comment here