Amid speculations of imposing fees on UPI, the Payments Council of India (PCI) has clarified the position, saying that UPI payments are completely free for general consumers and there are no plans to impose any fees on them in the future. In a statement issued on social media, the council said that customers can continue to make digital payments without any additional fees.
UPI is widely used across the country, from tea shops to large shopping malls. Recent discussions about potential UPI fees have raised concerns among consumers and small businesses. However, PCI has clarified that no fees will be levied on person-to-person (P2P) and general consumer transactions.
The council also said that small shopkeepers and businesses need not panic. They will not be charged any merchant discount rate (MDR) or additional fees for accepting payments through UPI. The digital payments system aims to connect all businesses, large and small, to the digital economy, so protecting the interests of small merchants will remain a priority.
In fact, UPI has now become the world’s largest real-time payment system, with billions of transactions taking place every month. Over the past decade, banks, fintech companies, NPCI, and the Reserve Bank of India (RBI) have invested heavily in its secure operation. Functions like cybersecurity, technical maintenance, and fraud prevention require continuous financial resources.
For this reason, options are being considered to ensure the long-term sustainability of the system. Experts believe that even if a fee system is implemented for large merchants in the future, it will be a commercial agreement between payment companies and merchants. It will not have a direct impact on ordinary customers.
PCI has reiterated that necessary investments will continue to ensure the security, reliability and smooth functioning of this digital payment network used daily by millions of Indians, while UPI services will remain free for general consumers.
