UPI transaction

One thing was troubling UPI users for some time now. That is whether we will have to pay extra money on UPI transactions in the coming days. This question had also arisen because a few months ago RBI Governor Sanjay Malhotra had said that nothing is free. Someone has to pay the charge for that service. No matter who gives it. In such a situation, a confusion had arisen in everyone's mind that the government might start imposing charges on this in future. But now the government has removed this confusion through the budget. The government has said that the government is not going to impose any tax or levy on UPI transactions. It will remain completely free. Let us also tell you what has been said by the government in this regard?

Big announcement in the budget

Financial Services Secretary M Nagaraju said on Monday that the provision of Rs 2,000 crore in the Budget 2026-27 to support UPI (Unified Payment Interface) will ensure free transactions through it. He also said that due to irregularities in banks, cyber fraud is less than three percent and this problem can be dealt with by vigilance of the people. Finance Minister Nirmala Sitharaman has announced a subsidy of Rs 2,000 crore for the popular digital payment app UPI and RuPay Debit Card in the budget for the financial year 2026-27. According to the revised estimate in 2025-26, it was Rs 2,196 crore.

UPI transaction will remain free

Nagaraju said that the provision of Rs 2,000 crore in the budget of 2026-27 to support UPI means that free transactions will continue through it. In response to a question related to cyber fraud, Nagaraju said that due to irregularities in banks, cyber fraud is less than three percent and this problem can be dealt with by vigilance of the people. When asked about the proposal of constituting a high-powered committee in the budget for banks for a developed India, he said that the terms and conditions of functioning of the committee will be prepared now. After that a committee will be formed. He said that the purpose of this initiative is to prepare a blueprint through the committee as to how banks will be prepared for a developed India.

condition of banks is better

Nagaraju said that currently NPA (non-performing assets) in banks is low, profits are good. We are in a stronger and better position as a bank. Regarding big banks, he said that for a country like ours, we need three to four big banks. In response to a question, he said that the Finance Ministry is considering increasing the limit of Foreign Direct Investment (FDI) in public sector banks from the current 20 percent to 49 percent so that their capital base can be strengthened.

Talks continue on FDI

Nagaraju said that we are still considering it and consultations are going on between the ministries to increase the FDI limit to 49 percent. The FDI limit in public sector banks (PSBs) and private sector banks is 20 percent and 74 percent respectively. Up to 49 percent FDI is allowed in private sector banks through the automatic route. For more than 49 percent and up to 74 percent, government permission is required.