A series of viral social media rumors claiming that the Union Government has authorized commercial banks to levy direct user fees and an eighteen percent tax surcharge on standard UPI fund transfers was officially debunked on Thursday by the Ministry of Finance. Official fact-checkers confirmed that ordinary peer-to-peer transactions and consumer retail purchases remain completely cost-free for citizens.
The misleading reports emerged following a distorted misinterpretation of routine tax circulars that clarified how commercial merchant discount rates charged between financial payment aggregators and high-turnover retailers are treated under the Goods and Services Tax framework. The finance ministry reaffirmed that standard individual users transferring money between personal bank accounts or paying neighborhood vendors incur zero transaction charges or GST.
Authorities advised citizens and digital banking consumers not to share unverified screenshots or inflammatory online claims regarding digital banking tariffs. National Payments Corporation of India officials affirmed that UPI remains India’s foundational public digital infrastructure, with no changes planned to its zero-charge policy for common retail consumers.
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Sources:
https://indianexpress.com/archive/2026/09/17/