The Centre categorically said UPI users will not pay transaction charges, while most merchant payments will also remain free. The Finance Ministry said a nominal MDR could apply only to select merchant transactions above a threshold. An NPCI-led UPI and Services Steering Committee will decide the MDR, if any, after Parliament passes the proposed amendment
New Delhi: The Centre on Saturday "categorically stated" that Unified Payments Interface (UPI), users will not have to pay any transaction charges for making payments through UPI, while a nominal Merchant Discount Rate (MDR) could be introduced for a limited set of merchant transactions in the future.
"No Charges for UPI Users. Vast Majority of the Transactions to Remain Free of Charge for Merchants as well. Amendment to the Payment and Settlement Systems Act (PSS Act) an Enabling Provision to Ensure further proliferation of Financial Inclusion, UPI’s Long-Term Sustainability, Technological Advancement, and Resilience Against Emerging Risks...", the Ministry of Finance said.
Lok Sabha passes amendment Bill
The government's clarification comes a day after the Lok Sabha passed a Bill to amend the Payment and Settlement Systems Act, 2007, which authorises the government to permit banks and other service providers to levy charges on payments through UPI and other notified electronic payment modes.
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