'Fake': Govt dismisses reports suggesting banks asked to stock ATMs ahead of UPI fee rollout
PIB Fact Check directly rejected the claim and said no such instructions had been issued by either the RBI or the Ministry of Finance to banks to stock up ATMs ahead of the UPI fee rollout
- Sep 23, 2026,
- Updated Sep 23, 2026 3:09 PM IST
The government on Wednesday clarified that reports of instructions issued to banks to across the country to stock up ATMs ahead of UPI fee rollout are false. In a social media post, the government said that neither the Reserve Bank of India (RBI) nor the Finance Ministry issued any such instructions to banks.
The clarification came after a newspaper clipping published by LiveMint circulated online with the headline, “Banks asked to stock up ATMs ahead of UPI fees.” The clipping claimed that the Reserve Bank of India (RBI) and the Finance Ministry had sought preparations for cash demand amid the introduction of charges on certain UPI transactions.
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The unit marked the headline as fake and advised people to flag suspicious Central Government-related content to PIB Fact Check.
The clarification is important amid recent changes to the UPI framework. The Finance Ministry has said that UPI will continue to remain completely free for person-to-person (P2P) transactions, regardless of the amount transferred. Merchant payments of up to Rs 2,000 will also remain free, while transactions covered under the zero-MDR framework for small merchants will continue without charges.
Under the new framework, a 0.4 per cent Merchant Discount Rate (MDR) will apply only to specified person-to-merchant transactions above Rs 2,000. For transactions of Rs 75,000 and above, the MDR will be capped at Rs 300 per transaction. The government clarified that MDR is not a charge collected from customers by the government or NPCI, but is distributed among participants in the payment ecosystem. Banks have been advised to ensure merchants do not pass the MDR on to customers. The ministry said around 96 per cent of merchant transactions will remain unaffected.
ALSO READ: 3-day bank strike from September 28: SBI asks customers to complete key transactions early
The government has separately reiterated that consumers will not face transaction charges for UPI payments, while P2P transactions will remain free.
The latest official clarification highlights the importance of checking financial and banking claims through official sources. PIB Fact Check has urged citizens to rely on verified information from government departments, the RBI and other authorised institutions rather than forwarding unverified social media posts or headlines.
The government on Wednesday clarified that reports of instructions issued to banks to across the country to stock up ATMs ahead of UPI fee rollout are false. In a social media post, the government said that neither the Reserve Bank of India (RBI) nor the Finance Ministry issued any such instructions to banks.
The clarification came after a newspaper clipping published by LiveMint circulated online with the headline, “Banks asked to stock up ATMs ahead of UPI fees.” The clipping claimed that the Reserve Bank of India (RBI) and the Finance Ministry had sought preparations for cash demand amid the introduction of charges on certain UPI transactions.
READ THIS: 'Fake': Centre debunks viral gazette on merger of 9 public sector banks
The unit marked the headline as fake and advised people to flag suspicious Central Government-related content to PIB Fact Check.
The clarification is important amid recent changes to the UPI framework. The Finance Ministry has said that UPI will continue to remain completely free for person-to-person (P2P) transactions, regardless of the amount transferred. Merchant payments of up to Rs 2,000 will also remain free, while transactions covered under the zero-MDR framework for small merchants will continue without charges.
Under the new framework, a 0.4 per cent Merchant Discount Rate (MDR) will apply only to specified person-to-merchant transactions above Rs 2,000. For transactions of Rs 75,000 and above, the MDR will be capped at Rs 300 per transaction. The government clarified that MDR is not a charge collected from customers by the government or NPCI, but is distributed among participants in the payment ecosystem. Banks have been advised to ensure merchants do not pass the MDR on to customers. The ministry said around 96 per cent of merchant transactions will remain unaffected.
ALSO READ: 3-day bank strike from September 28: SBI asks customers to complete key transactions early
The government has separately reiterated that consumers will not face transaction charges for UPI payments, while P2P transactions will remain free.
The latest official clarification highlights the importance of checking financial and banking claims through official sources. PIB Fact Check has urged citizens to rely on verified information from government departments, the RBI and other authorised institutions rather than forwarding unverified social media posts or headlines.