The Government has clarified that UPI will remain free for consumers and all Person-to-Person transactions will continue to be free of charge. The Finance Ministry in a statement said, consumers will not face any transaction charges while making payments through UPI, while the vast majority of merchant transactions will also remain free of charge. It said that if Merchant Discount Rate (MDR) charges are introduced, they will apply only to a limited set of merchant transactions above a certain threshold and at a nominal rate.

The Ministry said that the amendment to the Payment and Settlement Systems Act is an enabling provision aimed at ensuring UPI’s long-term sustainability, technological advancement and resilience against emerging risks. It said, continued investment in cybersecurity, fraud prevention, technology and infrastructure will be essential as transaction volumes grow. It has also highlighted UPI’s growing importance as a critical part of India’s digital payment infrastructure. The platform processed two thousand 366 crore transactions worth 29.9 lakh crore rupees last month alone and is now live in 11 foreign countries.