The Finance Ministry has clarified that the new UPI framework will not affect person-to-person payments. UPI will continue to remain free for individuals, according to the ministry’s statement.
The ministry also said 96% of merchant transactions will remain free. The clarification addresses questions over whether the framework could introduce charges for people transferring money directly to one another.
What the framework means for users
The central assurance is that person-to-person UPI payments will not be affected. Individuals will continue to use UPI for such transfers without charges.
Related coverage also reports that UPI payments of up to Rs 2,000 will remain free of bank charges. The available details distinguish between individual payments and merchant transactions, with the latter forming the area where further decisions may be required.
Merchant transactions remain under discussion
The Finance Ministry’s statement says 96% of merchant transactions will continue to be free. A banks’ panel is expected to take a decision on merchant charges for UPI transactions above Rs 2,000.
The framework therefore leaves the treatment of some higher-value merchant transactions under consideration, while maintaining free access for person-to-person payments. The complete decision on merchant charges above Rs 2,000 is still awaited.
Why the clarification matters
UPI is widely used for both direct transfers and payments to merchants. By separating the 2 categories, the Finance Ministry has sought to make clear that the new framework does not impose charges on individuals sending money to one another.
For merchants and banks, the remaining issue concerns possible charges on transactions above Rs 2,000. The next step is a decision by the banks’ panel on that question.
Conclusion
The Finance Ministry’s clarification keeps person-to-person UPI payments free and says 96% of merchant transactions will also remain free. The decision on merchant charges above Rs 2,000 is yet to be taken.
Frequently Asked Questions
Q. Will person-to-person UPI payments remain free?
Yes. The Finance Ministry says the new framework has no impact on person-to-person transactions, which will continue to remain free.
Q. How many merchant transactions will remain free?
The ministry says 96% of merchant transactions will remain free.
Q. Will UPI payments up to Rs 2,000 attract bank charges?
Related coverage says UPI payments of up to Rs 2,000 will remain free of bank charges.
Q. What is pending for merchant UPI payments above Rs 2,000?
A banks’ panel is expected to decide on merchant charges for UPI transactions above Rs 2,000.
Q. Does the new UPI framework affect individual transfers?
No. The Finance Ministry says the framework does not affect person-to-person transactions.
