Charges on UPI Payments Above ₹3,000? Not True, Finance Ministry Dismisses Rumors
New Delhi – Recent reports suggesting that the Indian government was considering reintroducing Merchant Discount Rate (MDR) charges on Unified Payments Interface (UPI) transactions above ₹3,000 have been debunked by the Finance Ministry. In an official statement, the ministry clarified that such claims are “completely false, baseless, and misleading.”
Government Denies Any Plans for UPI Transaction Fees
The Finance Ministry strongly refuted the speculation, stating:
“There is no truth to reports about imposing MDR on UPI payments. Such baseless and sensational claims create unnecessary fear and uncertainty among citizens. The government remains fully committed to promoting digital payments via UPI without any charges.”
Earlier, some media reports had claimed that discussions were underway to introduce a 0.3% MDR on large UPI transactions to support banks and payment service providers. However, the ministry has now categorically denied any such move.
Why Were These Rumors Circulating?
The speculation likely arose due to concerns from banks and payment firms about the rising costs of processing high-value digital transactions. Since January 2020, UPI transactions have operated under a zero-MDR policy, meaning no fees are levied on merchants or users.
While industry bodies like the Payments Council of India (PCI) had previously suggested a small MDR on large merchants, the government has reiterated its stance that UPI will remain free for all users.
What Does This Mean for UPI Users?
- No additional charges on UPI payments, regardless of transaction size.
- The government remains focused on expanding India’s digital payments ecosystem.
- RuPay and UPI transactions will continue to be fee-free, unlike some debit/credit card payments (which have MDR between 0.9% to 2%).
The Finance Ministry urged the public to ignore false reports and rely only on official announcements regarding digital payment policies.
