The Government of India has clarified that UPI will remain free for ordinary users.
What does this mean for you?
- ✅ No charge for customers: You will not have to pay a transaction fee for making normal UPI payments.
- ✅ P2P payments remain free: Sending money to friends, family or another person through UPI will remain free.
- ✅ Merchant charges are separate: MDR (Merchant Discount Rate) is a fee related to merchants accepting digital payments. It is not a charge on customers for using UPI.
- ✅ Most merchant transactions remain protected under the applicable rules: Merchant-side MDR applies only according to the thresholds and categories set under the UPI framework.
- 🔒 The purpose of the framework is to support UPI infrastructure, cybersecurity, fraud prevention, innovation and future growth.
Why was the law changed?
UPI has grown enormously since its launch in 2016. As usage increases, banks and payment companies need to continuously invest in:
Cybersecurity • Fraud Prevention • Technology • Infrastructure • Reliability
The changes to the Payment and Settlement Systems framework are intended to help make the UPI ecosystem sustainable while keeping digital payments affordable and accessible.
UPI's Growth 🇮🇳
In July 2026 alone, UPI processed approximately:
2,366 crore transactions
₹29.9 lakh crore in value
UPI has also expanded internationally and is now available in multiple countries.
Simple Message
UPI payment for citizens = FREE ✅
Sending money to another person = FREE ✅
MDR = Merchant-side fee under applicable rules, not a normal customer transaction charge.
Always rely on official information from the Government of India, Ministry of Finance, RBI and NPCI regarding UPI charges.