No Charges for UPI Users

The Ministry of Finance issued a press release stating that UPI users will continue to incur no transaction charges and all person‑to‑person (P2P) payments will remain free. Merchant discount rates (MDR) may be introduced only on a limited set of transactions above a threshold and at a nominal rate, lower than current debit/credit‑card MDRs. The government links these provisions to an amendment of the Payment and Settlement Systems Act, 2007, which it says will support UPI’s long‑term sustainability, technological upgrades and risk resilience as transaction volumes grow. The release also notes that UPI processed 2,366 crore transactions worth ₹29.9 lakh crore in July 2026 and is operational in 11 foreign countries.