New Delhi, 22 August (Kiran News). Today, everyone is using UPI. After the introduction of UPI, making payments has become very easy for people. Anyone can go anywhere and make a payment effortlessly. There are often reports that the government is going to increase the charge on UPI, or that higher fees will be applied. But now, there is big news that the government has decided not to charge any fee on UPI transactions.
No Charge for Payment Through UPI
For your information, the central government informed on Monday that there is no proposal to impose any transaction fee on digital payments. UPI transactions have been made very simple by the National Payments Corporation of India (NPCI). A new rule for UPI payments was introduced on 30 August 2019, allowing banks to charge MDR at the rate of 0.30 percent of the transaction value.
UPI Payment
In this context, Minister of State for Finance, Pankaj Chaudhary, said in a written reply in the Lok Sabha that Section 10A of the Payment and Settlement Systems Act 2007 states that no bank or system shall levy any fee on the person making or receiving payment through electronic means as prescribed under Section 269SU of the Income Tax Act, 1961.
CBDT Recognised the Payment
CBDT has recognised UPI and RuPay Debit Card as digital payment mediums under Section 269SU of the Income Tax Act, 1961. To ensure the smooth operation of UPI, the government started an incentive scheme from FY 2021-22 to 2024-25, providing about Rs 8,730 crore during this period.
UPI Transactions See Tremendous Increase
UPI transactions have grown rapidly. In 2017-18, there were only 92 crore UPI transactions, which rose to 18,587 crore in 2024-25, showing a CAGR of 114 percent. The transaction value also jumped from Rs 1.10 lakh crore to Rs 261 lakh crore.
UPI Created a New Record
According to the government, UPI set a new record in July 2025, with over 1,946.79 crore transactions in a single month. The total number of digital payments in the country increased from 2,071 crore in 2017-18 to 22,831 crore in 2024-25, with an average annual growth of 41 percent. During this period, the total transaction value rose from Rs 1,962 lakh crore to Rs 3,509 lakh crore.
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