In a press release dated September 15, 2026, India's Ministry of Finance described a new UPI framework introduced under the Payment and Settlement Systems Act, 2007, following deliberations by the UPI Steering Committee. The ministry says person-to-person transactions remain free irrespective of amount, merchant payments up to Rs 2,000 carry no charge, and small merchants receiving up to Rs 1 lakh a month through UPI QR codes keep a zero rate. A merchant discount rate of 0.4% applies to specified person-to-merchant transactions above Rs 2,000, capped at Rs 300 for payments of Rs 75,000 and above. Transactions above Rs 2,000 in sectors the ministry lists as essential and thin-margin, including railways, telecommunications, insurance, fuel and agricultural inputs, attract a flat Rs 5, and payments relating to mutual funds, securities and stockbrokers attract 0.02%, capped at Rs 300. The ministry says the charge is not a tax and is not collected by the government or NPCI, that banks have been advised to ensure merchants do not pass it on to customers, that UPI apps may not impose platform fees, and that about 4% of merchant transactions will be affected. News reports, including Inc42, say the framework takes effect on October 15. MediaNama, Deccan Chronicle and other outlets report that advocate Anjan Datta has filed a public interest litigation in the Supreme Court challenging a September 14 notification, the framework and the amended Section 10A of the 2007 Act, arguing among other grounds that it gives the executive unguided discretion. The petition's arguments have not been tested in court.