India Keeps UPI Free for Consumers and Small Merchants

The Payments Council of India announced on August 7, 2026, that Unified Payments Interface (UPI) services will remain free for consumers and small merchants. This statement serves as a clarification following the Lok Sabha's passage of a Bill to amend the Payment and Settlement Systems Act, 2007.

The legislative amendment grants the Government of India the authority to allow banks and other service providers to impose charges on UPI payments. Despite this new legal framework, the Payments Council maintains that the cost-free nature of the service for smaller users will be preserved to ensure continued accessibility.