Nirmala Sitharaman clarifies UPI transaction charges will not apply to customers

Union Finance Minister Nirmala Sitharaman stated that UPI services remain free for the general public. She clarified that any Merchant Discount Rate (MDR) fees associated with digital transactions are levied on merchants rather than customers. This response addressed concerns raised by Congress leader Jairam Ramesh, who suggested that recent legislative changes might lead to charges for ordinary users on digital payment platforms.

The discussion follows the passage of the Finance (No. 2) Bill, 2024, in the Lok Sabha. Sitharaman noted that a steering committee led by the National Payments Corporation of India is still determining the specifics of MDR charges. She emphasized that these fees are intended to support banks and fintech companies in investing in digital infrastructure, innovation, and security, ensuring that users continue to benefit from a robust payment ecosystem.