New Delhi, Aug. 6 -- Reserve Bank of India (RBI) Governor Sanjay Malhotra has clarified that while digital payments via the Unified Payments Interface (UPI) currently remain free for users, the model may not be sustainable without a clear mechanism to cover underlying costs.

His remarks come amid renewed debate over the long-term viability of a no-cost digital payments ecosystem in India.

Speaking at the RBI's Monetary Policy Committee (MPC) meeting on August 6, Malhotra underscored that UPI transactions are not inherently free and that someone is already bearing the cost of maintaining the infrastructure.

"I never said that it can remain free forever," he said, in response to a query on whether charges like the merchant discount rate ...