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The Finance Ministry on Monday clarified that there is no plan to impose charges on Unified Payments Interface (UPI) transactions, quashing speculation that India's most popular digital payment system may cease to be free for individuals. "Presently, there is no such proposal to impose transaction charges on UPI," Minister of State for Finance Pankaj Chaudhary said in a written reply in the Lok Sabha. The clarification comes days after comments by RBI Governor Sanjay Malhotra had reignited conc
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FAQ :
No, the Finance Ministry has clarified that there is currently no proposal to impose transaction charges on UPI for individuals.
Speculation arose following remarks by the RBI Governor about the sustainability of free services, though he later clarified he never suggested users would have to pay.
The government has been subsidising UPI transactions, particularly for small-value payments (up to ₹2000) to small merchants, through an Incentive Scheme since January 2020.
The government has paid out approximately ₹8,730 crore over the last four years to subsidise UPI transactions under the Incentive Scheme.
While UPI remains free for individuals, some banks have reportedly started charging payment aggregators a nominal fee per transaction.
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