India's free UPI payment ecosystem could soon witness its biggest policy shift since launch. The government has proposed amendments to the Payment and Settlement Systems Act that create a legal framework for introducing Merchant Discount Rate (MDR) on selected digital payment modes in the future.

While no immediate charges have been announced, reports suggest the government is considering a 0.25% to 0.4% merchant fee on UPI transactions above ₹2,000 made to businesses. Person-to-person transfers are expected to remain free, while larger merchants could bear the charges based on their annual turnover.

UPI Payments May No Longer Be Free? Government Eyes Merchant Charges

India's digital payments revolution continues to break records.

The Unified Payments Interface (UPI) recorded its highest-ever monthly transaction value in July, touching an impressive ₹29.88 lakh crore. The latest NPCI data highlights the rapid growth of digital payments, fintech innovation, and cashless transactions across the country.

What's driving this surge, and what does it mean for India's digital economy?

UPI clocks ₹29.88 lakh crore value

India's Unified Payments Interface (UPI) has added another international milestone, with Cambodia becoming the latest country to join the fast-growing digital payments network. What began as a domestic innovation has evolved into a global fintech success story, enabling seamless cross-border transactions and strengthening India's digital influence worldwide. With more than 30 countries reportedly exploring similar partnerships, UPI's expansion highlights how Indian technology is increasingly shaping the future of global payments.


Cambodia Joins UPI Map: 30+ Nations in Queue

Global tech firms Amazon and Meta are preparing to raise concerns about India’s digital payments market, where PhonePe and Google Pay continue to dominate. Executives from several platforms are expected to meet the National Payments Corporation of India (NPCI).

‘80% market share’: Why rivals are raising concerns over PhonePe, Google Pay

India’s latest UPI data points to a clear shift in how consumers spent in March. Discretionary expenses witnessed a noticeable slowdown.


UPI Data Shows Dip in Discretionary Spending 

The Reserve Bank of India is planning to introduce a delay for high-value UPI transactions, giving users a one-hour window to review or cancel payments. The move aims to curb rising digital fraud cases by adding an extra layer of security. With stricter checks and more user control, the proposal could significantly change how large digital payments are processed across India.


RBI Plans Delay & Extra Checks on High-Value UPI Payments to Curb Rising Digital Fraud

An Indian minister has introduced a new Tokenization Bill in Parliament aimed at strengthening digital payment security and protecting consumer data. If passed, the legislation will regulate how sensitive financial information like card details  is stored and processed, encouraging safer online transactions and reducing fraud. Lawmakers are debating key provisions as India moves toward more secure digital ecosystems.


Indian Minister Introduces New Tokenization Bill in Parliament 

India is in talks to integrate UPI with Alipay+, aiming to allow Indian travelers to make seamless cross-border payments at global merchants. The move could expand UPI’s reach and simplify international transactions for Indians abroad.


India Explores Linking UPI With Alipay+ to Enable Global Payments

UPI Smashes Records with 21.6 Billion Transactions in December 2025 - Elets BFSI.


How UPI rewired the way India pays in 2025 

 India’s real-time payments platform UPI scaled fresh highs in 2025, posting record transactions both in volume and value.


India's UPI Adoption Expands Beyond Metros in 2025

India’s Unified Payments Interface, or UPI, continues to earn global recognition. The International Monetary Fund (IMF) has officially listed India’s UPI as the world’s largest real-time payment system by transaction volume. This video breaks down what the IMF report highlights, why UPI is leading globally, and how India’s digital payments revolution is reshaping financial systems worldwide.


IMF Recognises India's UPI System as World's Largest 

India's unified payments interface, the UPI, gets global recognition.
The international monetary fund, or the IMF lists India's UPI as the world's largest real-time payment system by transaction volume.

India’s UPI Gets Global Recognition for Digital Payment Innovation

The Unified Payments Interface (UPI) continued its rapid rise in November 2025, crossing over 19 billion transactions worth Rs 24.58 lakh crore as of November 28, according to data released by the National Payments Corporation of India (NPCI).


UPI payments in India Register Steady Growth YoY in November 2025 

This Diwali, India’s Unified Payments Interface (UPI) hit a new milestone with record transactions worth Rs 1.02 lakh crore in a single day. October saw an average of 695 million daily UPI transactions, up 6% from September. Festive spending combined with lower GST rates boosted digital payments across e-commerce and retail, reflecting the growing adoption of cashless transactions nationwide.

Diwali Sparks Record Rs 1.02 Lakh Crore UPI Transactions | Digital Payments Soar

India is pioneering AI-driven digital commerce with the introduction of UPI payments within ChatGPT. In collaboration with the National Payments Corporation of India (NPCI), Razorpay, and OpenAI, this pilot program allows users to browse and purchase products—like groceries from BigBasket—directly within the ChatGPT interface, without switching apps.


ChatGPT Meets UPI: ChatGPT May Soon Handle Your UPI Payments

The National Payments Corporation of India (NPCI) has raised the UPI limit for Person-to-Merchant (P2M) transactions to ₹10 lakh per day for select verified categories, effective from September 15. This move aims to simplify high-value digital transactions for Indian users. The UPI limit for Person-to-Person (P2P) transfers remains unchanged at ₹1 lakh per day. Find out who qualifies for the new limit and how it impacts merchants and consumers alike.

UPI new rules: Transaction limit now ₹10 lakh | Big boost for business & payments

UPI Transaction Volume Hits a Record High | WION Business Watch

The transactions volume of India's homegrown fin tech unified payment interface or UPI, hit a new record in August. While UPI transactions value declined slightly, the number of banks live on UPI surged to a fresh high. That is according to data from national payments corporation of India or N.P.C.I.



UPI Transaction Volume Hits a Record High | WION

The primary change under this new reform will significantly reduce the time taken for payment completion, from 30 seconds earlier to around 15 seconds now.

PhonePe, Google Pay, and Paytm transactions to become faster, NPCI rolls out key UPI upgrade

The report indicates that India is likely to become one of the fastest-growing AI economies globally.

India’s digital push could drive its AI market to $17 billion by 2027: Report

This zero-MDR regime has been in effect since it was announced in the FY22 Budget by the Union government to boost digital adoption. Previously, merchants paid a fee of under 1 per cent of the transaction amount.

‘Baseless, false’: Finance Ministry says no plan for any fee on UPI transactions

The value of UPI transactions last month crossed 25 lakh crore rupees, 12 times that of all card transaction value.

World-beater in the making: India's UPI

India’s popular digital payment platform UPI faced yet another disruption, marking the third technical snag in just a few weeks. Over 1,100 complaints were logged on Downdetector, with users reporting failed transactions and delays. NPCI has acknowledged the issue and urged users to be patient as teams work on restoring normalcy.

UPI services disrupted again across India, users report massive outage

India News: This was the third time India’s most widely used digital payment system was hit in three weeks, after March 26 and April 2, disrupting transactions and frustrating users.

UPI services hit by third outage in three weeks, thousands of users report difficulties

UPI is one of India's great success stories. It is now one of the top payment methods in the country. To improve user experience, the National Payments Corporation of India (NPCI) has announced some new changes to the UPI services. Under the new rules, if you have a UPI account that you haven't used for a while or linked to an inactive mobile number, then you may soon not be able to use the UPI ID. Watch in for more details!

UPI payments to be blocked on inactive mobile numbers from April 1

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