UPI payments could soon attract merchant charges after Parliament approved a legal change allowing MDR on certain digital transactions. One proposal suggests a 0.3% to 0.5% fee on UPI payments above Rs 2,000 at large merchants. However, authorities have not announced any final rate yet.
For millions of Indians, UPI payments now feel as common as cash or card payments. Parliament has cleared a legal change that could allow MDR charges on some digital transactions, including UPI.
However, this change does not mean users will suddenly pay a fee on every UPI transaction. Instead, it creates a legal framework for such charges in the future, according to a Reuters report.
The government has not announced a final UPI fee rate yet. It has also not confirmed when any charges could take effect.
One proposal suggests an MDR of 0.3% to 0.5% on UPI payments above Rs 2,000. The proposal could apply to merchants with annual turnover above Rs 1.5 crore.
Another option could link the fee to a merchant’s annual turnover. Authorities may also consider a maximum cap on the charge.
Therefore, users should not treat Rs 2,000 as a confirmed UPI fee threshold. The figure remains part of a proposed fee structure.
The proposed MDR would apply to merchants, not directly to users. Banks and payment service providers would receive the fee for processing digital payments.
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For example, you could scan a QR code and pay a large retailer through UPI. The proposal does not mean your UPI app would automatically deduct an extra charge from your account.
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A proposed MDR model could apply charges to some UPI payments above Rs 2,000. No final rule exists yet.
The proposed MDR would apply to merchants. It does not mean users will automatically pay extra fees.
One proposal suggests an MDR of 0.3% to 0.5% for eligible transactions.
No. The Rs 2,000 figure is part of a proposal and is not a confirmed threshold.
Authorities have not announced a final fee rate or confirmed when any charges would begin.
