Government Confirms Zero Fees for Consumers Under Proposed UPI Framework

The Indian government officially clarified that consumers will not be charged for utilizing the Unified Payments Interface, ensuring that person-to-person transactions remain entirely free of charge. This official statement was issued to dispel mounting public speculation regarding potential fee structures following a recent legislative amendment proposed under the Payment and Settlement Systems Act.

Any future Merchant Discount Rate, should it be introduced, would apply exclusively to a highly restricted category of merchant transactions exceeding a defined monetary threshold at nominal rates significantly lower than traditional credit and debit card fees. The regulatory authority over any potential implementation rests with the NPCI-led UPI and Services Steering Committee following parliamentary enactment of the Taxation and Other Laws Amendment Bill.

The enabling legislative provision is designed to safeguard the long-term operational resilience, technological advancement, and cybersecurity integrity of the world's largest real-time payment network. Operating at unprecedented scale, the infrastructure processed 2,366 crore transactions valued at ₹29.9 lakh crore during July 2026 alone while continuing its expansion across eleven international jurisdictions.