UPI transactions to remain free for consumers & small merchants: PCI

The Payments Council of India (PCI) has announced that UPI will continue to be free for consumers. In a statement, the PCI affirmed that every Indian can continue to make instant digital payments without any transaction charges. It also noted that small merchants will not be charged for accepting digital payments. The PCI added that banks, fin-tech companies, NPCI, and the RBI have been investing in technology, cyber-security, fraud prevention, and innovation to maintain UPI’s reliability.   

There has been considerable discussion around UPI and merchant charges. Here are the facts behind the conversation what it means for consumers, merchants, and India's digital payment ecosystem.

1. Will I have to pay to use UPI?
No. UPI has always been free for consumers since…

— PCI - Payments Council of India (@PCIUpdates) August 7, 2026

The PCI clarified that any applicable merchant service charges, which are commercial arrangements solely between merchants and payment providers, do not mean that consumers pay to use digital payments. It highlighted that UPI has become a critical national digital infrastructure, used daily by many citizens. The PCI further noted that as transaction volumes continue to grow, sustained investment in security, resilience, innovation, fraud prevention, and infrastructure will remain essential to ensure UPI reliably serves consumers and businesses for years to come.