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The Indian government has clarified that there is no plan or proposal to impose taxes on UPI transactions of any amount, including those exceeding ₹2,000. This clarification comes in response to circulating misinformation and a "big statement" attributed to the government suggesting such a tax.

The Finance Ministry and the Reserve Bank of India (RBI) have consistently maintained that UPI (Unified Payments Interface) is a public good and a foundational layer of India's digital payment ecosystem, intended to remain free for users. Reports indicating the introduction of a tax on UPI transactions above a certain threshold are inaccurate. The government has emphasized its commitment to promoting digital payments and making them accessible and affordable for all citizens. The fee structures or taxes that might apply are generally only to the payment service providers (PSPs) for specific services they offer, not to the end-user for standard UPI transactions.

 


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