The Payment Council of India (PCI) confirmed on August 9, 2026, that UPI transactions will remain free for all individual consumers, following the passage of a new authorization bill.
While person-to-person transfers remain free, the government clarified that banks may be permitted to levy nominal Merchant Discount Rates (MDR) on specific high-value merchant payments.
The policy aims to balance the sustainability of digital payment infrastructure with the government's commitment to maintaining zero-cost transactions for the general public.