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The central government had reiterated that there is no proposal to impose any kind of transaction fee on Unified Payment Interface (UPI) based digital payments. The statement underlines the government’s commitment to promote digital payments and keep them affordable for users.

Minister of State for Finance Pankaj Chaudhary had clarified in the Lok Sabha that, “Under Section 10A of the Payment and Settlement Systems Act 2007, no bank or system provider will charge fees on electronic payment methods like UPI.” The Central Board of Direct Taxes (CBDT) has notified UPI and RuPay debit cards as fee-free payment instruments under Section 269SU of the Income Tax Act, 1961.

To ensure seamless availability of UPI, the government had introduced an incentive scheme from the financial year 2021-22 to 2024-25. During this period, ecosystem partners received approximately Rs. Incentive assistance of Rs 8,730 crore was provided. UPI has witnessed unprecedented growth in digital payments. Starting from 92 crore transactions in FY 2017-18, it has reached 18,587 crore in FY 2024-25, which shows a compound annual growth rate (CAGR) of 114%. The transaction value is also Rs. Increase from Rs 1.10 lakh crore to Rs. 261 lakh crore has happened. In July 2025, UPI created a new record with more than 1,946.79 crore transactions.

Total digital payment transactions in the country are expected to increase from Rs 2,071 crore in the financial year 2017-18 to Rs 22,831 crore in 2024-25, which shows a CAGR of 41%. The transaction value during this period was Rs. 1,962 lakh crore to Rs. 3,509 lakh crore has happened. It is noteworthy that UPI’s fee-free policy and government incentive schemes have made India a global leader in digital payments. This system is not only user friendly but is also strengthening the digital economy of the country.