UPI to Stay Free for Consumers, Small Merchants: PCI

The clarification comes amid renewed debate on the sustainability of operating the country’s rapidly expanding digital payments infrastructure. PCI said the discussion is not about charging consumers but about ensuring long-term support for an ecosystem that now processes billions of transactions every month.

According to the industry body, small merchants are not required to pay charges for accepting UPI payments, and protecting such businesses remains central to the platform’s inclusive growth strategy. UPI has enabled millions of small businesses across the country to accept digital payments without the cost barriers traditionally associated with electronic transactions.

“Small merchants are not required to pay any charges (MDR) to accept UPI payments. UPI was designed to make digital payments accessible for even the smallest businesses across India, and protecting small merchants remains central to the ecosystem’s inclusive growth,” it added.

PCI noted that UPI has evolved from a new payment platform into the world’s largest real-time payment system. This growth has increased requirements for technology upgrades, cybersecurity, fraud prevention and operational resilience. As transaction volumes continue to rise, discussions are under way on how to sustainably support the infrastructure while ensuring that consumers and small merchants remain unaffected.

The council said banks, payment companies, fintech firms, the National Payments Corporation of India (NPCI) and the Reserve Bank of India (RBI) have collectively invested for nearly a decade in building and maintaining the UPI ecosystem.

The statement seeks to separate the ongoing industry conversation on infrastructure costs from any suggestion that ordinary users or small merchants would face new charges for using or accepting UPI.