Quick Summary
The Union Finance Ministry has strongly denied reports suggesting that the government is planning to impose a Merchant Discount Rate (MDR) on large-value Unified Payments Interface (UPI) transactions. In an official statement released on the social media platform X, the ministry labelled such claims as "false, baseless and misleading." "Speculation and claims that the MDR will be charged on UPI transactions are completely false, baseless and misleading. Such baseless and sensation-creating sp
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FAQ :
No, the Union Finance Ministry has strongly denied reports suggesting any plans to impose a Merchant Discount Rate (MDR) on UPI transactions, labelling such claims as false, baseless, and misleading.
The government remains fully committed to the zero-MDR policy on UPI transactions, which has been in place since January 2020, aiming to promote digital payments.
Recent media reports suggested the government was considering allowing MDR charges on UPI transactions above Rs 3,000 to support the financial sustainability of banks and payment service providers.
The Payment Council of India had urged the government to review the zero-MDR policy due to financial strain on stakeholders, proposing a nominal MDR on large UPI transactions and for RuPay debit cards.
UPI dominates India's digital payments, accounting for over 80% of retail digital transactions in FY 2023-24, with over 131 billion transactions conducted.
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