Are There Charges on Digital Payments?

Amid reports that charges could be imposed on UPI transactions, PhonePe founder and CEO Sameer Nigam has assured users that Indian consumers will not be charged for personal UPI transactions. He clarified that UPI services will continue to remain free for Indian users and that they will not have to pay fees for digital transactions made through the platform.

The discussion follows the Lok Sabha's approval of amendments to the Payment and Settlement Systems Act, 2007. The changes do not impose charges on personal UPI payments made by individuals to the bank accounts of family members or friends. According to Finance Ministry sources, MDR charges may apply to certain payments above ₹2,000 at large shopping malls, corporate supermarkets and luxury hotels with high annual turnover. However, ordinary users will not have to pay charges for personal UPI transactions.