A claim circulating online says that banks have been instructed to keep ATMs fully stocked with cash before the new UPI fee framework comes into effect. The claim has spread through a newspaper clipping and social media posts, creating confusion among customers.
The Press Information Bureau (PIB) Fact Check has now clarified that the claim is fake. According to the government’s fact-checking agency, neither the Reserve Bank of India (RBI) nor the Ministry of Finance has issued any instruction to banks to stock additional cash in ATMs ahead of the UPI fee rollout.
What Did PIB Fact Check Say?
The clarification came after a newspaper clipping carrying a headline about banks being asked to stock ATMs ahead of UPI fees began circulating online.
PIB Fact Check rejected the claim and said that no such directive had been issued by either the RBI or the Finance Ministry. The clarification specifically addresses the alleged instruction to increase ATM cash stocks before the new UPI framework takes effect.
Therefore, customers should not assume that banks are preparing ATMs for a sudden shift from digital payments to cash because of the new UPI rules.
What Are the Actual Changes in UPI Rules?
There is a genuine change in the UPI framework, but it does not mean that customers will start paying a fee for ordinary UPI transfers.
According to the Ministry of Finance, all person-to-person (P2P) UPI transactions will remain free, regardless of the amount transferred. Merchant payments of up to ₹2,000 will also remain free, while transactions covered under the zero-MDR framework for small merchants will continue without charges.
For specified person-to-merchant (P2M) transactions above ₹2,000, a Merchant Discount Rate (MDR) of 0.4% will apply. For transactions of ₹75,000 or more, the MDR will be capped at ₹300 per transaction. The government has also clarified that MDR is not a customer fee or a tax collected by the government or NPCI.
The government has instructed banks to ensure that merchants do not pass the MDR cost on to customers. UPI users will continue to have free access without a monthly transaction quota under the framework.
How to Verify Viral UPI and Banking Claims
Financial and banking-related information can spread quickly through social media posts, videos, audio messages and forwarded messages. Customers should verify such claims through official government and regulatory sources before sharing them.
PIB Fact Check provides a dedicated service for checking claims related to the Central Government. You can visit the PIB Fact Check website for verification. The government has also advised citizens to rely on official information from the Ministry of Finance, RBI and NPCI rather than forwarding unverified claims.
Disclaimer: This article is intended for general informational purposes. UPI rules, MDR provisions and banking procedures may be updated or clarified by the authorities. Readers should verify the latest information through official government, RBI or NPCI sources before acting on any financial or banking-related claim.