New Delhi, August 7, 2026 (Yes Punjab News)
The Bharatiya Janata Party (BJP) on Friday clarified that any proposed charges on Unified Payments Interface (UPI) transactions will not be imposed on ordinary users and will apply only to certain commercial transactions.
The clarification came a day after the Lok Sabha passed a Bill amending the Payment and Settlement Systems Act, 2007, allowing the government to permit banks and other payment service providers to levy charges on UPI and other notified electronic payment modes.
Speaking to IANS, BJP MP Ashok Mittal said the proposed charges were not meant for common citizens.
“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. The charges on UPI will only be applicable to certain business-related transactions and not to ordinary users,” he said.
Bihar BJP President Sanjay Saraogi also sought to address concerns over the proposed move, saying the decision would not put an additional burden on the general public.
He said UPI had transformed India’s digital payment ecosystem and was widely adopted by traders, street vendors and small businesses. Saraogi added that the exact nature and extent of charges would be decided later when rules are framed, with the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) expected to play a role in determining the implementation mechanism.
Janata Dal (United) MLC Neeraj Kumar Singh supported the proposal, arguing that payment systems require sustainable financial models to continue operating efficiently.
“If you want to make a transaction through UPI, what is wrong with paying a charge for it? If you have obtained a GST number for business purposes and want to carry out transactions, then you have to pay for the system,” he said, adding that UPI was initially introduced without charges during its development phase.
However, the proposal faced criticism from Opposition parties. BSP MLA Satish Kumar Singh Yadav alleged that the government was increasing the tax burden on citizens and questioned the move to introduce charges on digital payments.
The amendment passed by the Lok Sabha seeks to remove the existing restriction that prevents banks and payment service providers from charging Merchant Discount Rate (MDR) on notified electronic payment modes.
The government’s stated objective is to create a sustainable revenue model for banks, payment service providers and digital payment infrastructure companies while continuing to promote digital transactions.
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