UPI Charges Explained 2026: Are UPI Payments Still Free? Know the Latest Rules

UPI payments for ordinary consumers remain free, while charges may apply to certain merchant transactions.

Sending money to friends and family through UPI remains completely free, regardless of the amount.

Small shopkeepers with monthly business transactions up to ₹1 lakh can accept UPI payments without additional charges.

More than 95% of small-value merchant payments below ₹2,000 remain free under the stated framework.

UPI apps and platforms cannot impose additional platform fees on customers for these transactions.

For eligible large merchant transactions above ₹2,000, a Merchant Discount Rate (MDR) of up to 0.4% may apply.

Essential services such as railways, fuel, telecom, electricity bills and insurance may attract a maximum charge of ₹5 on transactions above ₹2,000.

UPI payments for mutual funds and securities are subject to a 0.02% charge, capped at ₹300, according to the stated framework.

Bottom Line: Consumers continue to enjoy free UPI payments for everyday transactions, while specific merchant categories may have applicable charges.

Thanks for watching!

Stay updated with the latest in
Education & Careers.