NPCI UPI charges: what NPCI, RBI and the government have said

The National Payments Corporation of India (NPCI) is the not-for-profit body that builds and operates UPI, RuPay, IMPS and other retail payment rails. It sets UPI's operating rules, including transaction limits and, now, merchant fees.

In September 2026, NPCI set out a framework for a 0.4% merchant discount rate on specified person-to-merchant transactions above ₹2,000, capped at ₹300, effective October 15, 2026. Read the full breakdown of the new charges.

The Reserve Bank of India regulates payment systems under the Payment and Settlement Systems Act. RBI has historically favoured keeping UPI free or low-cost for consumers, and has framed any fee discussion around merchant-side economics, not user charges. The current MDR framework is consistent with that: it touches merchants, not customers.

The Ministry of Finance, through the Press Information Bureau, has stated that consumers should not face UPI transaction charges and that person-to-person transfers remain free. This is the clearest official line on the topic and the reason we label consumer fees as not applicable.

Confirmed: in an NPCI or RBI circular. Reported: announced and covered by credible media but not yet published as a circular we can link. Expected/Proposed: under discussion. The 0.4% framework is currently marked Reported; we will update when the circular is public.