UPI stays free: Payment Council assures no charges for users, small merchants

On Friday, the Payments Council of India clarified that consumers and small merchants will continue to enjoy free UPI services despite the Lok Sabha passing a Bill to amend the Payment and Settlement Systems Act, 2007. The amendment allows banks and service providers to levy charges but ensures no transaction fees for users or MDR for small merchants. Finance Minister Nirmala Sitharaman emphasized that any future MDR would support infrastructure investment without impacting consumers. Banks and payment firms have invested heavily in UPI's development over nearly a decade, stressing the need for continued financial support to maintain security and innovation.