New Delhi: The government on Saturday, August 8, 2026 moved to quell speculation around fees on UPI, saying consumers will not have to pay any transaction charges for using the country’s digital payments network.
In a statement, the government clarified that the vast majority of merchant transactions will also remain free.
Addressing concerns over a possible Merchant Discount Rate, it said any future MDR, if introduced, would apply only to a limited set of merchant transactions above a specified threshold.
The rate, it added, would be nominal and lower than typical MDRs charged on debit and credit card transactions.
UPI has become India’s most widely used digital payments platform, processing billions of transactions monthly. The clarification comes amid market chatter that charges could be levied to make the network financially sustainable.
The government reiterated its commitment to keeping digital payments affordable and accessible for consumers and small merchants.
