New Delhi: The Payments Council of India (PCI) has clarified that UPI transactions will continue to be free for consumers, amid confusion following the passage of a new Bill in the Lok Sabha.
The Tax and Other Laws (Amendment) Bill, 2026 was introduced and passed, and it empowers the Central government to decide on exemptions related to charges collected from merchants for electronic payment methods. References in the Bill to merchant-related charges triggered speculation on social media.
Some posts claimed that fees would be imposed on UPI transfers. Responding to these claims, PCI said that where applicable, a merchant service charge is part of an agreement between merchants and payment service providers.
PCI stressed that this does not mean consumers must pay for digital money transfers. It also said small shop owners and traditionally family-run grocery stores would be protected from such merchant service charges, helping ensure digital payments remain accessible for small businesses nationwide.
