NEW DELHI, India — The Centre has clarified that users will continue to make UPI payments free of charge, addressing concerns that recent changes proposed under the Payment and Settlement Systems Act could lead to charges on everyday digital transactions. The government said all Person-to-Person (P2P) UPI payments would remain free, while the vast majority of merchant transactions would also continue without charges.
टैग: NPCI
Can the Government Levy Charges on UPI Payments? What the Proposed Law Means for Merchants and Customers
The passage of the Taxation and Other Laws (Amendment) Bill, 2026 in the Lok Sabha has triggered a nationwide debate over the future of Unified Payments Interface (UPI) transactions. The discussion centres on whether the government can now allow banks and payment service providers to levy charges on UPI payments through a revised legal framework.