Informist, Tuesday, Aug. 26, 2025

--Bk of Baroda MD: UPI payment charges to evolve at some point
--CONTEXT: Bk of Baroda MD Debadatta Chand speaking at FIBAC 2025 in Mumbai
--Bk of Baroda MD: Don't think there will be significant impact of US tariffs

MUMBAI – The issue of payment of charges for Unified Payment Interface transactions will evolve at some point, according to Bank of Baroda Managing Director and Chief Executive Officer Debadatta Chand. "UPI is really a game-changer as far as the payment system is concerned. It has really changed the entire payment ecosystem in the country. So, the issue (of UPI charges) will possibly evolve at some point of time," Chand Tuesday said at FIBAC 2025, organised by the Federation of Indian Chambers of Commerce and Industry and the Indian Banks Association.

Chand's comments come after media reports said the government was planning to levy a merchant discount rate fee on UPI transactions. The finance ministry, however, denied the report and said it was not considering any such charges and remains fully committed to promoting digital payments via UPI.

The conversations around transaction charges on UPI again gained steam after Reserve Bank of India Governor Sanjay Malhotra in July said that UPI is sustainable as long as someone bears the cost, and right now, the government is bearing that cost. "Cost of any service should be paid collectively, or by the user," Malhotra had said.

Chand also expressed confidence about credit demand from corporates. Bank of Baroda's corporate loan book grew 4.2% on year to INR 3.7 trillion in Apr-Jun. He also sees good credit off-take in the infrastructure sector going ahead.

Chand does not expect any significant impact on the Indian economy due to the US tariffs. US President Donald Trump has slapped an additional 25% punitive tariff on Indian goods, on top of the 25% tariff announced previously, citing New Delhi's continued purchases of Russian oil. The additional 25% tariff will be levied from Wednesday.

Bank of Baroda reported a net profit of INR 45.41 billion for the quarter ended June, up 1.9% on year. On Tuesday, shares of the bank ended 2.5% lower at INR 235.14 on the National Stock Exchange. End

Reported by Priyasmita Dutta, Pratiksha and Sagar Sen

Edited by Saji George Titus

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