Government clarifies UPI transaction charges and potential merchant fees
The Indian government has clarified that Unified Payments Interface (UPI) transactions will remain free for consumers and for all person-to-person transfers. Following the passage of an amendment to the Payment and Settlement Systems Act, 2007, the Ministry of Finance stated that any future Merchant Discount Rate (MDR) would apply only to a limited set of merchant transactions exceeding a specific threshold. Officials emphasized that these potential fees would be nominal and lower than those currently applied to debit or credit cards, aiming to support the long-term sustainability of the digital payment ecosystem.
17 paksh21 articles
What Happened
The Ministry of Finance issued a statement confirming that UPI services will remain free for individual users following concerns raised by the passage of an amendment to the Payment and Settlement Systems Act, 2007. The government clarified that person-to-person transactions will not incur any charges. While the new legislation allows for the introduction of a Merchant Discount Rate, officials stated that such fees would only apply to a limited category of merchant transactions above a specified financial threshold.
The government described reports suggesting external pressure on policy changes as unfounded. The proposed MDR, if implemented, is intended to strengthen the infrastructure of the digital payment ecosystem and expand services into rural and semi-urban areas. The Ministry of Finance noted that any such fees would be nominal and significantly lower than the rates currently associated with traditional debit and credit card transactions.
Background
The Payment and Settlement Systems Act, 2007, provides the legal framework for the regulation and supervision of payment systems in India, including the authority to set standards for digital transactions.
Standing context, compiled from public reference sources rather than from the coverage above.
Key Facts
- The government confirmed that UPI remains free for individual consumers.
- Person-to-person UPI transactions will continue to be free of charge.
- An amendment to the Payment and Settlement Systems Act, 2007, was recently passed in the Lok Sabha.
- Any future Merchant Discount Rate would apply only to a limited set of merchant transactions above a specific threshold.
- The government stated that potential merchant fees would be lower than those for debit or credit cards.
- The Ministry of Finance denied that policy changes were driven by external influences.
The Timeline21
Every article on this story, in the order it was filed. We do not rank the outlets.
7 Aug
- TOIThe Times of IndiaWill you have to pay to use UPI? FM Sitharaman clarifies who bears MDR
8 Aug
- ETThe Economic TimesUPI stays free; select merchants may pay MDR
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- Ututtarbanga-sambadUPI | ইউপিআই ব্যবহারে অতিরিক্ত টাকা কাটবে? সত্যিটা জানিয়ে দিল কেন্দ্র!
9 Aug
- Nanamasthe-telanganaయూపీఐపై దోబూచులాట!
- TOIThe Times of IndiaProposed MDR for UPI transactions will be nominal, says government
- PVPrajavaniಯುಪಿಐ ಪಾವತಿಗೆ ಶುಲ್ಕ ಇಲ್ಲ
Where This Is Being Covered9 languages
Languages
Newsrooms carrying this story, by publication language.
- English6 outlets
- Bengaliবাংলা2 outlets
- Marathiमराठी1 outlet
- Teluguతెలుగు1 outlet
- Tamilதமிழ்2 outlets
- Kannadaಕನ್ನಡ1 outlet
- Odiaଓଡ଼ିଆ1 outlet
- Malayalamമലയാളം2 outlets
- Punjabiਪੰਜਾਬੀ1 outlet
Regional reach
States where a local newsroom is carrying this. National mastheads and wire agencies circulate everywhere and are counted separately, not drawn on the map.
- No local newsroom
- 1 outlet
- 2 or more
13 states with local coverage. Spread across the country, with no regional concentration. Also carried by 5 national mastheads.
About This Analysis
One summary, built from every source. No single newsroom's voice.
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Paksh: the sides a story is told from. 17 newsrooms filed on this one, and every filing is listed above.