Daijiworld Media Network – New Delhi

New Delhi, Aug 9: The Central government has clarified that Unified Payments Interface (UPI) services will remain completely free for customers, and all person-to-person (P2P) transactions will continue without any charges.

In a statement, the Union finance ministry assured that customers will not have to pay any transaction fees while making payments via UPI. It also added that a vast majority of merchant transactions will remain entirely free of cost.

The government confirmed that even if a Merchant Discount Rate (MDR) is levied, it would only apply to merchants conducting transactions beyond a specific limit, and the fee would remain nominal.

The ministry emphasized that recent amendments to the Payment and Settlement Systems Act are intended to ensure the long-term sustainability of the UPI ecosystem, foster technological advancements, and build resilience against emerging cyber threats.

Highlighting the need for continuous investment in cybersecurity, fraud prevention, and infrastructure due to the massive surge in transaction volumes, the government underscored UPI's critical role in India's digital payment revolution.

Demonstrating its massive scale, UPI recorded a staggering 2,366 crore transactions amounting to Rs 29.9 lac crore in the last month alone. Currently, the indigenous payment system is actively functioning in 11 countries globally.

The government reiterated that all P2P fund transfers will continue to be free as usual, with no charges applicable to the vast majority of merchant transactions.