The Indian government stated on Saturday that individuals will face no charges for UPI payments, though a small Merchant Discount Rate might apply later to certain merchant deals. This follows the Lok Sabha’s approval of amendments to the Payment and Settlement Systems Act, 2007, allowing fees on UPI and other digital methods. Person-to-person transfers will remain free, and most merchant activity will stay exempt. Any new charges would target only high-value deals, stay modest, and fall below card rates. The changes aim to support UPI’s growth through better security and infrastructure. Officials rejected claims of outside pressure, noting the system was launched domestically in 2016. Congress leader Jairam Ramesh argued that costs could still reach consumers via price hikes, affecting small vendors.
