Nirmala Sitharaman Clarifies New UPI Merchant Charges: Zero Transaction Fees for Individual Retail Consumers
A financial news report on Finance Minister Nirmala Sitharaman clarifying that revised UPI charges apply exclusively to high-volume commercial merchants.
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Nirmala Sitharaman Clarifies New UPI Merchant Charges: Zero Transaction Fees for Individual Retail Consumers
Union Finance Minister Nirmala Sitharaman has issued a clear public clarification regarding unified digital payments, reassuring citizens that Unified Payments Interface (UPI) transactions remain 100% free for individual retail consumers and small vendors.
1. Executive Summary: UPI Policy Clarification
UPI fee policy clarification at a glance:
UPI TRANSACTION FEE CLARIFICATION 2026
• Retail Customers: ZERO Charges on All Person-to-Person (P2P) & Person-to-Merchant (P2M) Payments
• Small Vendors: Full Exemption for Small Micro-Merchants
• Commercial Interchange: Small Processing Fee Applied Exclusively to Large Corporate Enterprises
2. Protecting Digital Inclusion & Public Adoption
Addressing public queries following regulatory notifications, the Finance Minister confirmed that the government will continue funding the digital payment incentive scheme to ensure seamless digital financial inclusion for over 40 crore active UPI users.