UPI Charges Rumour: What's Free & What's Not?
Viral rumours claimed UPI payments would soon cost money after a new law change. The government has confirmed that personal UPI transfers and merchant payments for regular users remain free. Here is what actually changed and what did not.
Indians do 500 crore+ UPI transactions a month — more than the entire EU combined.
Your everyday UPI transfers and grocery payments stay completely free
Key Takeaways
Ignore viral forwards claiming UPI will become paid — verify any such news only on MyGovIndia, RBI, or NPCI official websites before sharing.
Check whether your bank is passing UPI transaction limits correctly — the per-transaction limit is ₹1 lakh for most users and ₹5 lakh for verified merchant payments.
If you run a small business, monitor NPCI and RBI announcements on MDR separately — future MDR decisions could affect your settlement amounts, not your customers' payments.
Viral rumours claimed UPI payments would soon cost money after a new law change. The government has confirmed that personal UPI transfers and merchant payments for regular users remain free. Here is what actually changed and what did not.
Here's what happened: A PSS Act amendment sparked viral rumours that UPI peer-to-peer and grocery payments would soon attract charges for regular users.. MyGovIndia officially clarified that personal UPI transfers and routine merchant payments remain free — no charges are being introduced.. MDR (Merchant Discount Rate) on UPI transactions was abolished by the government in January 2020 and any reversal requires a separate formal policy decision..
What you should do: Ignore viral forwards claiming UPI will become paid — verify any such news only on MyGovIndia, RBI, or NPCI official websites before sharing.. Check whether your bank is passing UPI transaction limits correctly — the per-transaction limit is ₹1 lakh for most users and ₹5 lakh for verified merchant payments.. If you run a small business, monitor NPCI and RBI announcements on MDR separately — future MDR decisions could affect your settlement amounts, not your customers' payments..
NPCI's official UPI circulars are published at npci.org.in under 'What's New' — bookmark it to catch any real UPI fee change before rumours hit WhatsApp.
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- [1]“Will you be charged for UPI peer transfers, grocery payments? MyGovIndia busts myths on MDR; here's what stays free” mint - money · 10 Aug 2026
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.