7 Aug 2026 (Navroze Bureau) : The Lok Sabha has passed a bill authorising the Central Government to permit banks to levy charges on Unified Payments Interface (UPI) transactions, if considered necessary under the proposed legal framework.
The legislation provides the government with the authority to notify such charges in the future but does not automatically impose fees on UPI transactions.
What the Bill Provides
The bill enables the government to frame rules allowing banks to recover charges on certain UPI transactions if required.
Officials clarified that the legislation creates an enabling provision and any future decision on UPI charges would require separate government notification.
No Immediate Change for Users
At present, there is no immediate change in the way consumers use UPI.
Existing UPI transactions remain unaffected unless the government decides to exercise the powers granted under the new law.
Government’s Objective
The Centre said the provision is intended to provide policy flexibility as digital payment infrastructure continues to expand and transaction volumes increase.
The government also emphasised its commitment to promoting digital payments while ensuring the long-term sustainability of the payment ecosystem.