Consumers, small merchants unlikely to pay charges for UPI transaction: Payments Council of India
Business 07 Aug, 2026

Consumers, small merchants unlikely to pay charges for UPI transaction: Payments Council of India

Business To Business New Delhi, 07 August, 2026:    Consumers and small merchants will continue to enjoy free Unified Payments Interface (UPI) services, the Payments Council of India said on Friday, clarifying that the recent legislative changes do not mean that transaction charges will be imposed immediately.
The clarification came a day after the Lok Sabha passed a Bill amending the Payment and Settlement Systems Act, 2007, which authorises the government to allow banks and other payment service providers to levy charges on transactions made through UPI and other notified electronic payment modes.
What the Payments Council of India said
In a post on X, the industry body stated:

  • UPI has remained free for consumers since its launch in 2016.
  • Consumers can continue making instant digital payments without paying transaction charges.
  • Small merchants will also continue to benefit from free UPI services.
What the Bill does
The amendment:
  • Empowers the government to permit charges on UPI and other electronic payment modes in the future.
  • Does not by itself impose any charges on UPI transactions.
As of now, there has been no announcement by the government introducing UPI transaction fees for consumers or small merchants, and UPI payments continue to remain free for them.

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