UPI Payments to Remain Free for Consumers, Government Clarifies

The Government has clarified that Unified Payments Interface (UPI) transactions will remain free for consumers, with all Person-to-Person (P2P) transactions continuing to attract no charges.

In a statement, the Finance Ministry said consumers would not have to pay any transaction fees while making UPI payments. The vast majority of merchant transactions will also remain free. It added that if Merchant Discount Rate (MDR) charges are introduced, they would apply only to a limited category of merchant transactions above a specified threshold and at nominal rates.

The Ministry clarified that the proposed amendment to the Payment and Settlement Systems Act is an enabling provision aimed at ensuring UPI’s long-term sustainability, technological advancement and resilience against emerging risks.

It emphasised that continued investment in cybersecurity, fraud prevention, technology and infrastructure would be essential to support the platform as transaction volumes continue to rise.

Highlighting UPI’s growing role in India’s digital payment ecosystem, the Ministry said the platform processed 2,366 crore transactions worth Rs 29.9 lakh crore last month alone. UPI is now operational in 11 foreign countries.