The Central government on Friday clarified that users do not have to pay any charges for UPI transactions, seeking to address concerns after a key legislative move in Parliament.
The clarification came a day after the Lok Sabha passed a Bill to amend the Payment and Settlement Systems Act, 2007, which would empower the government to allow banks and other service providers to levy charges on digital payment systems such as UPI.
According to the government, person-to-person UPI transfers will remain free of any fee. However, it indicated that in the future a very small charge could be introduced for certain merchant transactions, and only for payments above a specified threshold.
Officials said any such charge would be aimed at supporting costs related to strengthening UPI’s cyber security, fraud prevention measures and technology infrastructure.
