The Indian government has clarified that there are no plans to impose fees or GST on UPI transactions, easing fears amid online rumours and recent comments from the Reserve Bank of India.
India’s Finance Ministry has moved to calm fears that Unified Payments Interface users will face new charges, saying there is no plan to impose fees on ordinary consumers and urging people not to believe rumours circulating online. The clarification comes amid growing anxiety over whether the widely used digital payments system, which has become central to everyday transactions across India, could soon become more expensive to use.
According to reports in The Economic Times, Livemint and The Financial Express, the government also rejected claims that it was considering goods and services tax on UPI payments above ₹2,000, describing those suggestions as false, baseless and misleading. The ministry said UPI remains free for users and noted that no merchant discount rate is currently charged on these transactions, which means no GST applies. The Indian Express has separately explained that the government continues to treat UPI as a digital public good.
The discussion follows comments from Reserve Bank of India Governor Sanjay Malhotra, reported by The Times of India, that were interpreted by some as hinting at future charges. Malhotra later clarified that there is no proposal to levy fees on UPI transactions, while acknowledging that the system’s long-term running costs will eventually need to be covered in some form if it is to remain sustainable and keep growing.
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