Reserve Bank of India (RBI) Governor Sanjay Malhotra said on Wednesday that it was ‘very premature’ to make remark on the government’s proposed changes with regard to merchant charges on digital payments, while emphasizing that maintaining and growing India’s digital payments framework comes at a price that ‘someone has to pay.’Malhotra responded to a question about reports that the government might permit Merchant Discount Rate (MDR) on specific UPI transactions, such as those involving large retailers or those exceeding a specific value, by stating that the centre was presently working on the proposed amendment and refused to comment on its potential details.”It is very premature. The government is still implementing the change as of right now,” said Malhotra, adding that continuous investment is necessary to keep India’s digital payments infrastructure strong and effective.”Someone must cover the expenses. Everyone wants this public infrastructure to keep getting stronger, perhaps even more effective. We still do that. Right now, that’s our main priority. Let’s wait and see if this develops further,” he stated.Malhotra went on to explain that unless the government’s legislative process moves forward, he had nothing more to say.When asked if any fees charged to retailers will eventually be passed on to customers, the governor responded that the cost of running the system for digital payments is already being absorbed somewhere in the economy.”In the end, the consumer is already paying for it in one way or another. It might not be the same customer. You don’t get to see it immediately, but it might be the overall economy,” he stated.Malhotra clarified his previous statements that someone has to pay for the payments infrastructure by stating that the costs are already being covered, albeit not always by direct user fees.”Someone is covering the expense even if it might not be directly related to the user pays principle. I meant this. The expense will need to be covered by someone. He remarked, “I mentioned this earlier and I’m saying it again today.He added that maintaining investment in the country’s digital payments infrastructure should continue to be the top priority.The government has proposed changes to the Payment and Settlement Systems Act that could set the path for MDR on certain UPI transactions, with payments above Rs 2,000 made to large merchants emerging as a potential focus.Finance Minister Nirmala Sitharaman introduced the Payment and Settlement Systems (Amendment) Bill in Parliament, which dissolves a link between the Income Tax Act and the Payment and Settlement Systems Act. The centre would now have the power to announce which electronic payment methods are still free from fees.An MDR on UPI is not introduced by the proposed change. The rate, the merchants and transactions that would be covered, and the date on which such charges would take effect have not yet been finalized by the government.