3 weeks ago

Government Clarifies UPI Free for Users, Nominal MDR May Apply

Government Clarifies UPI Free for Users, Nominal MDR May Apply
No UPI Charges For Users, But Nominal MDR May Apply To Select Merchant Payments: Government · freepressjournal.in

UPI is a way for people in India to send and receive money using their phones.

Right now, people can use UPI without paying any charges.

The Indian government said that will stay the same — UPI will remain free for people who use it.

Some shop owners might have to pay a small fee, but only for big payments above a certain amount.

This fee would be much smaller than what banks usually charge for credit or debit cards.

The government made this possible by passing a new law about payment systems.

A committee will decide later if any fee is needed and how much it should be.

UPI is the biggest real-time payment system in the world.

In one month, people used it for billions of transactions, and it works in 11 other countries too.

So the short version is: UPI stays free for you, and only some big shop payments might get a tiny fee.

Key facts

User charges
Free for consumers
Merchant charges
Nominal MDR for select merchant transactions above an undecided threshold
Deciding body
UPI and Services Steering Committee headed by NPCI
Legal basis
Amendment to the Payment and Settlement Systems Act, 2007
July 2026 transaction volume
2,366 crore transactions
July 2026 transaction value
Rs 29.9 lakh crore
Global reach
Live in 11 foreign countries
Official information sources
Ministry of Finance, Reserve Bank of India, NPCI

Sources

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