The Payment and Settlement Systems Act, 2007 was passed in Lok Sabha, giving rise to concerns that the law would allow banks to charge fees on UPI transactions. The union government on Saturday clarified that transactions via UPI will remain free and attract no charges, after the passing of the Payment and Settlement Systems Act, 2007 in Lok Sabha earlier this week. Earlier reports had suggested that the Bill would allow the government to permit banks and payment companies to charge fees on UPI and other digital payments in the future.The Centre has now stated that a vast majority of UPI transactions will remain free of charge (Representative image)However, in a press release, the Centre has now stated that a vast majority of transactions would remain free of charge for customers as well as merchants. However, it said that nominal charges may apply on certain limited merchant transactions. “Consumers making payments will not face any transaction charges,” the government said, adding that all person-to-person (P2P) transactions would continue free of charge.Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs.