No UPI Charges For Users: Centre Explains What PSS Act Amendment Means

The
Ce t e
o
Satu day
cla ified
that
use s
will
ot
have
to
pay
a y
t a sactio
cha ges
fo
maki g
UPI
payme ts,
amid
co ce s
ove
a
ece t
ame dme t
to
the
Payme t
a d
Settleme t
Systems
Act
(PSS
Act).

The
gove me t
said
all
Pe so -to-Pe so
(P2P)
UPI
t a sactio s
will
co ti ue
to
be
f ee,
while
a y
futu e
Me cha t
Discou t
Rate
(MDR)
would
apply
o ly
to
a
limited
set
of
me cha t
t a sactio s
above
a
specified
th eshold.

The
cla ificatio
came
afte
the
ame dme t
to
the
PSS
Act
t igge ed
debate
ove
the
possibility
of
cha ges
bei g
imposed
o
o di a y
UPI
use s.

No
Cha ges
Fo
UPI
Use s

The
gove me t
catego ically
stated
that
co sume s
maki g
UPI
payme ts
will
ot
face
t a sactio
cha ges.

“UPI
will
emai
f ee
fo
citize s,”
the
gove me t
said,
addi g
that
the e
would
be
“No
cha ges
o
eve yday
t a sactio s
o
citize s.”

It
also
eite ated
that
all
P2P
t a sactio s
will
emai
f ee
of
cha ge.

Fo
me cha ts,
the
gove me t
said
a y
MDR
i t oduced
i
the
futu e
would
be
omi al
a d
would
apply
o ly
to
a
limited
set
of
t a sactio s
above
a
ce tai
th eshold.

The
gove me t
said
the
ate
would
be
sig ifica tly
lowe
tha
MDRs
applicable
to
debit
o
c edit
ca d
t a sactio s.

The
vast
majo ity
of
me cha t
t a sactio s
o
UPI
will
co ti ue
to
emai
f ee,
it
said.

NPCI
Committee
To
Decide
O
MDR

The
gove me t
said
the
p oposed
f amewo k
would
become
ope atio al
afte
Pa liame t
passes
the
Taxatio
a d
Othe
Laws
(Ame dme t)
Bill,
2026.

The
Bill
p oposes
a
ame dme t
to
Sectio
10A
of
the
Payme t
a d
Settleme t
Systems
Act,
2007.

ALSO
READ:

Dolly
Kha a-Backed
Small-Cap:
P ofit
Jumps
540%
As
Tu a ou d
Gai s
Pace

O ce
Pa liame t
passes
the
legislatio ,
the
“UPI
a d
Se vices
Stee i g
Committee”,
headed
by
NPCI,
will
decide
whethe
MDR
should
be
i t oduced.

The
gove me t
st essed
that
a y
MDR
would
be
th eshold-based
athe
tha
imposed
ac oss
all
UPI
t a sactio s.

Why
Is
The
PSS
Act
Bei g
Ame ded?

Acco di g
to
the
gove me t,
the
ame dme t
is
a
e abli g
p ovisio
aimed
at
suppo ti g
UPI’s
lo g-te m
sustai ability,
tech ological
developme t
a d
ability
to
withsta d
eme gi g
isks.

UPI
has
wit essed
expo e tial
g owth
i
t a sactio
volumes,
equi i g
co ti uous
i vestme t
i
cybe secu ity,
f aud
p eve tio
a d
suppo ti g
i f ast uctu e.

The
gove me t
also
said
a
sustai able
eve ue
model
was
ecessa y
to
e cou age
mo e
compa ies
to
expa d
thei
ope atio s
a d
i c ease
competitio
withi
the
digital
payme ts
ecosystem.

It
added
that
depe de ce
o
subsidies
alo e
would
ot
be
viable
fo
the
ext
phase
of
UPI’s
g owth.

Ce t e
Rejects
Claims
Of
Exte al
P essu e

The
gove me t
also
ejected
media
epo ts
suggesti g
that
exte al
i flue ces
we e
behi d
the
policy
cha ges,
calli g
such
claims
“u fou ded,
completely
false
a d
misleadi g”.

It
said
that
if
exte al
p essu e
had
i flue ced
the
policy,
the
gove me t
would
ot
have
i t oduced
UPI
i
2016
o
kept
it
f ee
fo
me cha ts
a d
citize s
si ce
Ja ua y
2020.

The
gove me t
said
the
ame dme t
should
i stead
be
viewed
as
pa t
of
its
b oade
objective
of
keepi g
I dia’s
digital
payme t
i f ast uctu e
sustai able,
competitive
a d
capable
of
suppo ti g
the
cou t y’s
expa di g
digital
eco omy.

“The
t uth
is
simple:
UPI
is
I dia’s
ow
i ovatio ,
a d
the
gove me t
emai s
committed
to
keepi g
it
f ee
fo
citize s
while
e su i g
its
sustai ability
fo
decades
to
come,”
it
said.

UPI
P ocesses
₹29.9
Lakh
C o e
I
July

The
gove me t
said
UPI
has
g ow
i to
the
wo ld’s
la gest
eal-time
payme t
system
si ce
its
lau ch
i
2016-17.

I
July
2026
alo e,
UPI
p ocessed
2,366
c o e
t a sactio s
wo th
₹29.9
lakh
c o e.

The
platfo m
is
cu e tly
live
i
11
fo eig
cou t ies,
while
seve al
othe
cou t ies
have
exp essed
i te est.

The
gove me t
said
expa di g
UPI
i to
u al
a d
semi-u ba
a eas
a d
mai tai i g
its
competitive ess
would
equi e
the
ecosystem
to
emai
self-sustai able
a d
affo dable.

It
desc ibed
the
PSS
Act
ame dme t
as
a
fo wa d-looki g
measu e
i te ded
to
e su e
that
UPI
emai s
secu e,
affo dable,
i clusive
a d
globally
ecog ised.

The
gove me t
also
u ged
citize s
to
ely
o ly
o
official
i fo matio
f om
the
Mi ist y
of
Fi a ce,
the
Rese ve
Ba k
of
I dia
a d
NPCI,
a d
avoid
fo wa di g
u ve ified
messages.

ALSO
READ:& bsp;

Go to Sou ce