UPI Fee Is Coming, But Are Banks Really Stocking ATMs With Cash? PIB Says No

The PIB Fact Check unit has rejected a Livemint headline claiming that the Reserve Bank of India and the Finance Ministry directed banks to stock ATMs with cash before the UPI merchant fee rollout on October 15, 2026.

The fact-check clarified that no such official instructions were issued to banks.

The headline of a newspaper clipping published by @livemint claims that banks have been asked to stock up ATMs ahead of UPI fee roll out.#PIBFactCheck:

❌ The claim being made in the headline is #fake .

✅ No such instructions have been issued by @RBI or the @FinMinIndia to… pic.twitter.com/Gexp0l0cdC

— PIB Fact Check (@PIBFactCheck) September 23, 2026

The claim suggested that authorities had asked lenders to prepare ATMs for a possible shift towards cash transactions.

The fact-check graphic placed the newspaper clipping under a prominent ‘FAKE’ stamp. It stated that consumers could temporarily adjust their payment habits following the UPI changes. It confirmed that no government directive required banks to increase ATM cash availability.

The upcoming UPI change introduces a 0.4 per cent merchant discount rate on person-to-merchant transactions above Rs 2,000.

The charge will remain capped at Rs 300 and will be paid by merchants.

Consumers will continue to use UPI without a charge under the new arrangement. Person-to-person transactions will remain free as well.

The clarification comes amid attention surrounding the proposed merchant fee and its potential impact on digital payments.

The PIB Fact Check response specifically addressed the claim linking the UPI fee rollout with ATM preparedness. It established that no direction from the RBI or Finance Ministry asked banks to stock additional cash in ATMs.

The fact check therefore distinguished between possible temporary changes in consumer payment behaviour and an official banking directive. The latter, it said, does not exist.

The clarification seeks to prevent misinformation surrounding the UPI merchant fee rollout and ATM cash availability.

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