3 weeks ago
MyGovIndia busts MDR myths; UPI payments remain free for users
Imagine you have an app on your phone that lets you send money to friends or pay for things without using cash.
Some people started sharing messages saying the app would soon start charging money for every payment.
The government's special helpers, called MyGovIndia, said those messages are not true.
Sending money to friends and family is still free.
Buying groceries, taking a cab, or getting coffee with the app is still free too.
The government talked about a possible small fee, but it would only apply to very big business payments, not everyday people.
The new rule is like a plan for the future, not a fee that is happening now.
The app, called UPI, has stayed free for citizens and merchants since 2020 and is used by millions of people in India.
So you can keep paying with your phone just like before!
MyGovIndia debunked viral social media claims that UPI payments would become chargeable.
Person-to-person UPI transfers such as splitting bills, paying rent, and sending money to family remain free.
Everyday merchant UPI payments for groceries, cab rides, and coffee remain free for users.
Any future MDR framework would apply only to high-value business transactions at a nominal rate.
In July 2026, users made over 2,300 crore UPI transactions worth nearly ₹30 lakh crore.
- Who
- MyGovIndia, the government's citizen engagement platform, and UPI users in India
- What
- Clarified that UPI payments remain free, debunking viral claims of new charges after an amendment to the Payment and Settlement Systems Act
- Where
- India, where UPI is also live in 11 countries
- When
- Recently, following debate sparked by an amendment to the PSS Act; the article cites July 2026 transaction data
- Why
- To correct misleading viral messages claiming that UPI payments would become chargeable
Viral claim: UPI payments becoming chargeable
MyGovIndia: UPI stays free for everyday users
UPI transaction charges
Viral claim: UPI payments becoming chargeable
Social media posts suggest users could soon have to pay for sending money through UPI.
MyGovIndia: UPI stays free for everyday users
All P2P and everyday merchant UPI transactions remain free; any future fee would only affect certain high-value business payments at a small rate.
Meaning of the PSS Act amendment
Viral claim: UPI payments becoming chargeable
The amendment means UPI is no longer free.
MyGovIndia: UPI stays free for everyday users
The amendment is an enabling provision that does not introduce charges for everyday users and only lays groundwork for a possible future MDR framework.
Trust in forwarded messages
Viral claim: UPI payments becoming chargeable
WhatsApp forwards claiming UPI fees should be taken at face value.
MyGovIndia: UPI stays free for everyday users
Viral forwards are misleading; users should rely on facts, as UPI remains completely free for everyday users.
Key facts
- Payment system
- UPI (Unified Payments Interface)
- P2P transfers
- Free for personal use
- Merchant payments for users
- Free for everyday purchases
- Possible future MDR
- Only high-value business transactions at a nominal rate
- UPI launched
- 2016
- Free for citizens and merchants since
- 2020
- Countries where UPI is live
- 11
- July 2026 transactions
- Over 2,300 crore transactions worth nearly ₹30 lakh crore
Quotes
MyGovIndia
Official government body clarifying UPI payment policies
“"Standard bank-to-bank UPI transfers remain completely free for everyday personal use, with zero transaction charges added to your payments."”
livemint.com
Sources
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