MPs, mostly belonging to the Opposition, on Wednesday (September 16, 2026) expressed concern over the government’s decision to levy a fee on UPI payments above ₹2,000 to merchants, claiming that the entire population of the country would be affected due to the “anti-people” move.
RSP MP N.K. It is not a charge on customers making UPI payments. UPI payments between two individuals will remain completely free, no matter how much money is transferred.
Premchandran, who is a member of the committee, said that the entire population of the country would be affected by the government’s decision to levy a fee on payments of above ₹2,000 to merchants. Ending nearly six years of fully free UPI payments, the government on Tuesday (September 15) introduced a 0.4% fee on transfers worth more than $2,000 made to merchants through UPI from October 15, while explicitly ring-fencing everyday person-to-person transactions as well as small payments from any charge. 5 things that remain free The new Unified Payments Interface framework will not mean a charge on people for using UPI, the government has clarified. Payments made to merchants up to ₹ 2,000 will also remain free. Earlier reporting noted: From October 15, merchants accepting UPI payments above ₹ 2,000 will pay a fee under the new framework, but customers will not have to pay this charge. Earlier reporting noted: The government said person-to-person (P2P) transactions account for about 70% of the total value of UPI transactions and will remain outside the MDR framework.
“It is a completely anti-people decision,” Mr. Premchandran said. “Customers will not be required to pay any charge when making such payments through UPI,” the Finance Ministry said in a statement, adding, “MDR is a charge within the merchant payment ecosystem. Also, individuals will continue to have “unlimited free usage, with no monthly quotas, volume restrictions or tiered caps on free UPI transactions”, it said.
Earlier reporting noted: New UPI charges: Will you pay for sending money or shopping? The clarification from the government came on Tuesday after confusion over the new framework and whether people would have to pay for making UPI payments.
Chairman of the Parliamentary Standing Committee on Finance Bhartruhari Mahtab said that some MPs raised the issue at the meeting and said that it may be taken up at the next meeting of the panel.
