The UPI transaction fee has been a hot topic in the country for a long time and the government has clarified that there is no proposal to impose a fee on the Integrated Payment Interface (UPI) transactions, it has been asked to relax that individuals may have to pay for digital payments soon. As mentioned in a report by The Indian Express, in the written reply to the Lok Sabha on Monday, Finance Minister Pankaj Chaudhary said, “Currently, there is no such proposal to accuse UPI of transaction.” The clarification after the comments of Reserve Bank of India (RBI) Governor Sanjay Malhotra expressed concern that UPI could be free.
Government re -confirmation status
Addressing questions in Parliament, Chaudhary said that the government has consistently supported free UPI transactions to promote digital payments. He highlighted that under the incentive scheme and low-value Bhima -P transactions to promote Rupay Debit Card, the government has already alienated from all around. 8,730 crore in the last four years to subsidize the cost of transactions.
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The Indian Express further revealed that the Finance Ministry had also rejected similar rumors in June, called “completely false, baseless and misleading”.
RBI governor’s remarks shook debate
At the Financial Express BFSI Summit in Mumbai on 25 July, RBI governor Malhotra commented that “good fruits” were given during the independence of UPI, any payment system was to be financially sustainable. His statement was widely interpreted as a sign that transactions could be introduced.
However, at the monetary policy press conference on 6 August, he clarified his comment. “I never said that it cannot be free forever … The government is giving it subsidy. Some person is paying cost. But I never said that users have to pay,” they insisted.
Banks start charging aggregators
While users will not pay the fee for UPI transactions, some banks have already introduced fees for payment aggregators. According to reports, ICICI Bank has given 0.02-0.04% fee (capped) per transaction 6- 10) From 1 August. If the payment is fixed directly to the ICICI merchant account, the fee does not apply. Private lenders like YES Bank and Axis Bank have also adopted similar practices.
These fees target payment firms such as Razorpe, Payu and Pine Labs, which act as middlemen between traders and banks.
UPI usage continues to increase
Despite speculation, UPI’s popularity remains unmatched. In July 2025, India recorded the price of 19.47 billion UPI transactions 25.08 lakh crores, 35% increase in volume and 22% increase compared to this month last year.
With digital payments, now the foundation stone of India’s financial ecosystem, the latest clarification of the government has assured individuals that UPI payment will continue at least yet.
