Wire · operational-macro
No Charges for UPI Users
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Fusion42 · 29 August 2026 · Fusion42 review
The Indian government amended the Payment and Settlement Systems Act to ensure UPI's long-term sustainability, confirming no transaction charges for consumers and free person-to-person payments. Merchant discount rates (MDR) may be introduced only for a limited set of merchant transactions above a threshold at a nominal rate, preserving most transactions free for merchants.
This Wire brief sits within Fusion42's coverage of Fintech, and 6 sources have reported it between 8 Aug 2026 and 10 Aug 2026.
◆ ◆ The Wire takeaway
Your fintech startup dealing with UPI must factor in stable consumer access to free digital payments while preparing for nominal merchant charges that may introduce new pricing pressures. This rule change opens a clearer path for sustainable growth but shifts revenue models towards merchant services.
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6 sources · first reported 8 Aug 2026 · latest 10 Aug 2026
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