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In today’s era, UPI has made the dream of cashless India come true. From tea shops to big showrooms, everywhere just one scan and payment done! But, recently the news of imposing charges on UPI transactions has increased the concern of the general public. Will making digital payments become expensive now? It is very important to understand the new proposal of the government and the truth behind it.

Is UPI going to be charged again?

The government and the banking system are now working towards making the digital payment ecosystem more robust and sustainable. There is discussion that once again imposition of ‘Merchant Discount Rate’ (MDR) is being considered. In fact, UPI is completely free since January 2020, which has brought a digital revolution. But now in view of the increasing infrastructure expenditure of banks and fintech companies, it has been recommended to re-implement this fee.

Who will be affected by this new rule?

First of all, know that this charge is not going to affect the pockets of common consumers at all. Like before, you will be able to use Google Pay, PhonePe or Paytm without any extra charge. This new charge is proposed to be implemented only on big traders. According to reports, this rule will be for those merchants whose annual revenue is more than Rs 1 to 1.5 crore and they accept transactions of more than Rs 2,000. The Parliamentary Committee has suggested imposing a fee of around 0.30% on these large transactions.

Relief news for small traders

About 90% of small and medium traders of the country will remain completely out of this scope. Grocery shops, small shopkeepers and street vendors in your locality will not have to pay even a single rupee extra for taking payment through UPI. The main objective of the government is to keep the payment system secure and better without affecting the customer experience. So, if you are a normal customer or a small businessman, you do not need to worry about this change at all.