New Delhi (Gurpreet Singh): The Payments Council of India (PCI) has issued a statement clarifying that Unified Payments Interface (UPI) transactions will continue to be completely free for everyday consumers and that small businesses, including local kirana stores, will not face any payment acceptance charges. The clarification comes amid ongoing discussions regarding the long-term sustainability of the payment infrastructure and the potential introduction of merchant charges for select commercial categories.
PCI reaffirmed that UPI was originally engineered to make digital transactions accessible to micro-enterprises, and safeguarding small merchants remains central to maintaining inclusive growth across the digital economy. Addressing concerns over potential indirect costs to users, the Council explained that any merchant service charges or Merchant Discount Rate (MDR) represent commercial arrangements between payment service providers and larger businesses, and will not translate into added costs for individual consumers.
Highlighting the mechanics of the ecosystem, PCI noted that operating the world’s largest real-time payment network entails substantial ongoing investments in cybersecurity, fraud prevention, compliance, customer support, and technology infrastructure. These operating expenses are currently borne by participating banks, payment service providers, and fintech firms to ensure a safe, reliable, and seamless user experience. As transaction volumes expand, PCI stressed that sustained investments remain vital to preserve the resilience and security of UPI as a critical piece of national digital public infrastructure.
