There is great news for UPI users: UPI payments remain free, dispelling concerns for millions of customers and small shopkeepers. UPI payments will continue to be free, and no charges will be levied on customers. The Payments Council of India (PCI) stated on Friday that Unified Payments Interface (UPI) transactions will remain free for customers, and no fees will be charged to small merchants—including *kirana* (grocery) stores—for accepting digital payments. The Council made this statement to address concerns arising from reports suggesting that fees might be imposed on merchants.

The Payments Council of India clarified that if a Merchant Service Charge (MSC) is applied, it would be a commercial arrangement solely between the merchant and the payment service provider.

What did the PCI say?
In a statement, the authority said, "UPI will remain free for customers, and no fees will be charged to small merchants for accepting digital payments." The PCI added that if any Merchant Service Charge (MSC) is implemented, it would be a commercial agreement between the merchant and the payment service provider; it does not mean that customers would have to pay for UPI transactions.

It stated, "To maintain the reliability of UPI, banks, fintech companies, the NPCI, and the RBI are investing in technology, cybersecurity, fraud prevention, and innovation. If a Merchant Service Charge is applied, it will be a commercial agreement between the merchant and the payment provider; this does not mean customers will have to pay to use UPI."

Referring to recent discussions regarding UPI charges, the Council noted that the platform has become the world's largest real-time payment system, processing billions of transactions every month. As the volume of transactions grows rapidly, stakeholders are exploring ways to ensure long-term support for the infrastructure required to sustain the system. This statement comes immediately after Finance Minister Nirmala Sitharaman dismissed claims that the general public might have to pay more for UPI transactions. She clarified that any Merchant Discount Rate (MDR) applicable to digital transactions would be borne by the merchants, not the customers.

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