The Ministry of Finance (MoF) on August 08, 2026, issued a notification regarding clarification on UPI Charges and Proposed MDR Framework.
The following has been stated: -
•The Government clarified that UPI transactions will remain free for consumers, including all Person-to-Person (P2P) payments.
•Any future Merchant Discount Rate (MDR) would apply only to limited merchant transactions above a threshold and at a nominal rate, while the vast majority of merchant transactions will remain free.
•The proposed amendment to the Payment and Settlement Systems Act, 2007 is an enabling provision aimed at ensuring UPI’s long-term sustainability, technological advancement, cybersecurity and resilience.
•UPI processed 2,366 crore transactions worth ₹29.9 lakh crore in July 2026 and is currently live in 11 foreign countries, reinforcing its position as the world’s largest real-time payment system.
The detailed notification is given in the document below.
[Notification No.: 2296594]
