India, Aug. 8 -- The Payments Council of India (PCI) has clarified that UPI payments will remain free for consumers amid growing speculation over the possible reintroduction of the merchant discount rate (MDR) on select UPI transactions.

"UPI will continue to remain free for consumers," the industry body said in a post on X, adding that small merchants, including kirana stores and local vendors, will continue to remain protected from MDR charges.

The clarification came after the Lok Sabha passed the Taxation and Other Laws (Amendment) Bill, 2026, on Thursday (August 6). The Bill proposes amendments to the Payment and Settlement Systems Act, 2007, enabling the government to prescribe MDR for certain electronic payment transactions.

Whil...