UPI- Big news for UPI users. Will there be a charge on UPI transactions of Rs 3,000 or more? Now the government has responded to this. Recently, there have been reports on social media that the government may have to charge for transactions of large amounts through UPI in the coming time.
It was being said that the government is planning to impose MDR (Merchant Discount Rate) on transactions of large amounts, which may make payment through UPI expensive. Now the answer has come from the government. Now the Finance Ministry has given complete clarification on this. The ministry has said that such news is false, baseless and misleading. The government clearly says that it wants to promote digital payments through UPI and there is no plan to impose any kind of charge on UPI.
The ministry has appealed to the people not to pay attention to such rumors. The government has made it clear that it is committed to keeping UPI free and convenient. Therefore, do not trust these rumors running on social media.
What is MDR?
MDR is the fee that banks charge merchants when they accept digital payments from customers. Earlier, merchants had to pay up to 1% MDR for payments made through debit cards, but in the year 2020, the government abolished MDR on debit cards to promote digital payments. However, MDR is still levied on credit card transactions, which usually ranges between 1% to 3%. This charge depends on the size of the transaction, card type and merchant category.
Speculation and claims that the MDR will be charged on UPI transactions are completely false, baseless, and misleading.
Such baseless and sensation-creating speculations cause needless uncertainty, fear and suspicion among our citizens.
The Government remains fully committed…
— Ministry of Finance (@FinMinIndia) June 11, 2025
