Informist, Monday, Aug. 18, 2025

NEW DELHI – There is no proposal under consideration to impose transaction charges on Unified Payment Interface, Minister of State for Finance Pankaj Chaudhary said, reiterating the ministry's stand on the matter.

"Presently, there is no such proposal to impose transaction charges on UPI," Chaudhary said in a written reply to a question in Lok Sabha. The government has extended incentive support of INR 87.30 billion till 2024-25 (Apr-Mar) from FY22, to ensure continuity of the UPI services by the ecosystem partners, Chaudhary said.

In June, after several media reports claimed that the government may levy a merchant discount rate fee on UPI transactions, the finance ministry issued a clarification that it was not considering any such charges and remains fully committed to promoting digital payments via UPI.

The conjectures of transaction charges on UPI resurfaced again in July after the Reserve Bank of India Governor Sanjay Malhotra, at an event in Mumbai, said that UPI is sustainable as long as someone bears the cost, and right now the government bears the cost. "Cost of any service should be paid collectively, or by the user," Malhotra had said. However, in August, the governor denied the statement. End

Reported by Krity Ambey

Edited by Deepshikha Bhardwaj

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