UPI Charges Not for Common Users, Will Apply Only to Commercial Transactions: BJP Clarifies

August 7, 2026

New Delhi: The Bharatiya Janata Party (BJP) on Friday clarified that the proposed charges on Unified Payments Interface (UPI) transactions will not be imposed on ordinary users and will apply only to commercial transactions.

The clarification came a day after the Lok Sabha passed a Bill to amend the Payment and Settlement Systems Act, 2007, allowing the government to permit banks and service providers to levy charges on payments made through UPI and other notified electronic payment modes.

BJP says common citizens will not pay UPI charges

Speaking to IANS, BJP MP Ashok Mittal said that the proposed charges are not meant for common users.

“First of all, I would like to clarify that charges on UPI are not being imposed on the common man. They will only apply to commercial transactions,” he said.

He added that the charges would be applicable only to certain business-related payments and not to regular UPI users.

BJP Bihar President Sanjay Saraogi also sought to clear concerns, saying that the move would not put any additional burden on the general public.

Rules and implementation details yet to be decided

Saraogi said UPI has played a major role in India’s digital payment revolution, with traders, street vendors and small businesses adopting the platform widely.

He said that the law has only been passed and the details regarding the amount and method of charges will be decided later through rules.

The Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) will play a role in deciding the implementation process, he added.

Opposition raises concerns over possible charges

Janata Dal (United) MLC Neeraj Kumar Singh supported the proposal, saying that payment systems require sustainable business models to continue functioning efficiently.

He argued that commercial transactions involving businesses may require a fee structure to maintain the digital payment ecosystem.

However, the move faced criticism from the Opposition. BSP MLA Satish Kumar Singh Yadav questioned the government’s decision, alleging that people are already facing multiple taxes and now digital payments may also come under charges.

The amendment, passed by the Lok Sabha amid Opposition protests, seeks to remove the existing legal restriction that prevents banks and payment service providers from charging Merchant Discount Rate (MDR) on notified electronic payment modes.

The government has said that any future framework will focus on maintaining a sustainable digital payment ecosystem while protecting ordinary users from additional burdens.