Archive · 8 Aug 2026
Government refutes rumors UPI transactions will be charged
Some people heard that paying with UPI — a way to send money from your phone — would start costing extra money.
The Indian government says those stories are not true.
The government called the rumors 'completely false and misleading.'
When you pay a shop or send money to a friend using UPI, it stays free.
Most shops don't pay any fee either when you pay them with UPI.
The government wants to change an old law to make UPI stronger, safer, and better at stopping fraud.
The new law will let a special committee, led by the National Payments Corporation of India, decide if large shops should ever pay a very small fee.
That fee would only apply to big merchant payments above a certain amount, and would be much smaller than fees for credit or debit cards.
The government says everyone should only trust official messages from the Finance Ministry, the Reserve Bank of India, and the NPCI.
UPI is very popular — in July 2026 alone, people used it for over 2,366 crore payments.
The government dismissed media reports about external influence or UPI charges as 'unfounded, completely false and misleading.'
All citizen payments and person-to-person transfers on UPI remain 100% free, and the vast majority of merchant transactions incur no charges.
The proposed amendment to Section 10A of the Payment and Settlement Systems (PSS) Act, 2007 is an enabling provision for the UPI ecosystem's sustainability, security, and technological robustness.
Any future Merchant Discount Rate (MDR) would be decided by a steering committee headed by the NPCI and apply only to limited merchant transactions above a threshold at nominal rates.
UPI processed 2,366 crore transactions worth ₹29.9 lakh crore in July 2026 and is live in 11 foreign countries.
- Who
- The Government of India (Ministry of Finance), the National Payments Corporation of India (NPCI), and the Reserve Bank of India (RBI).
- What
- Refuted rumors that UPI transactions would be charged fees, clarifying that payments remain free and that the proposed PSS Act amendment is only an enabling provision.
- When
- In 2026, amid media reports about the proposed amendment; UPI transaction data cited covers July 2026.
- Where
- India, where UPI operates; the system is also live in 11 foreign countries.
- Why
- To correct false rumors and prevent panic, and to ensure the long-term sustainability, security, and technological robustness of the UPI ecosystem.
Government Position
Media Reports / Rumors
UPI transaction charges
Government Position
UPI remains free for all citizens and the vast majority of merchants; any future MDR would apply only to limited merchant transactions above a threshold at nominal rates.
Media Reports / Rumors
Media reports and circulating messages suggested UPI transactions would start getting charged, prompting the government's clarification.
External influence on policy
Government Position
Claims that external forces drive policy changes are 'unfounded, completely false and misleading'; the amendment is an enabling provision for sustainability and security.
Media Reports / Rumors
Some media reports suggested external influences may be driving the policy changes.
- Payment System
- UPI (Unified Payments Interface)
- Citizen Charges
- 100% free payments and P2P transfers
- Merchant Charges
- Vast majority of merchant transactions incur no charges
- Legal Amendment
- Section 10A of the Payment and Settlement Systems (PSS) Act, 2007
- Bill
- Taxation and Other Laws (Amendment) Bill, 2026
- July 2026 Volume
- 2,366 crore transactions
- July 2026 Value
- ₹29.9 lakh crore
- Global Reach
- Live in 11 foreign countries