📷 Image: Wikimedia Commons / Soham Banerjee
Business
RBI Halts Planned UPI Transaction Fee After Quick Reversal
✍️ Telangana Today
🗓 18 Oct 2026, 10:02 AM
👁 18
The Reserve Bank of India announced a fee for UPI transactions but reversed the move within days, pausing the implementation.
The Reserve Bank of India (RBI) announced that a fee of 0.05% would be levied on UPI transactions for merchants, a move aimed at helping recover the costs associated with the payment system.
The announcement came amid concerns about rising fraud and the need to sustain the infrastructure that powers UPI.
Within a few days, the RBI reversed the decision, citing the potential impact on the digital payments ecosystem and the need for a more balanced approach.
The pause means UPI remains free for the time being, but the RBI has indicated that it will revisit the fee policy after further consultations.
The announcement came amid concerns about rising fraud and the need to sustain the infrastructure that powers UPI.
Within a few days, the RBI reversed the decision, citing the potential impact on the digital payments ecosystem and the need for a more balanced approach.
The pause means UPI remains free for the time being, but the RBI has indicated that it will revisit the fee policy after further consultations.