# No UPI charges for users, most merchants, says government

2026-08-09T09:56:17+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

The government on Saturday clarified that UPI will remain free for all users and the vast majority of merchants. The statement came after the Lok Sabha passed a bill amending the Payment and Settlement Systems Act, 2007, sparking fears of transaction charges. The government said any future merchant discount rate (MDR) would apply only to merchant transactions above a specified threshold and at a nominal rate, lower than card MDRs. PhonePe CEO Sameer Nigam and Razorpay CEO Harshil Mathur also backed keeping UPI free for consumers. The NPCI-led steering committee will decide on any MDR if the bill becomes law.

## Coverage

- government.economictimes.indiatimes.com <https://government.economictimes.indiatimes.com/news/digital-payments/upi-stays-free-for-users-vast-majority-of-transactions-to-remain-free-for-merchants-as-well-govt/133062492>
- livemint.com <https://www.livemint.com/money/razorpay-ceo-joins-phonepe-chief-in-backing-free-upi-payments-for-consumers-amid-doubts-over-mdr-11786255094842.html>
- ndtvprofit.com <https://www.ndtvprofit.com/business/upi-mdr-debate-will-fees-be-charged-for-person-to-person-transactions-govt-clarifies-11885616#publisher=newsstand>

Tags: digital payments, MDR, NPCI, regulatory amendment, UPI
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