UPI Payments to Stay Free: Payments Above Rs 3,000 to Remain Free says FM Sitharaman

New Delhi (The Uttam Hindu): The Finance Ministry has clarified its stand amid speculations about Unified Payments Interface (UPI) charges. Media reports claimed that the government may re-implement Merchant Discount Rate (MDR) on UPI transactions of more than Rs 3000. No charge will be applicable on transactions less than Rs 3000. The 0 MDR policy i.e. the rule of zero fees on merchants has been in place since January 2020. Now the government has said that there is no such plan.

Now there will be a fee on UPI payments of more than Rs 3000! Know what the government has to say: The Finance Ministry posted on the social media platform saying that the government has no such plans right now. Speculations and claims of charging MDR on UPI transactions are completely false, baseless and misleading. Such baseless and sensational speculations create unnecessary uncertainty, fear and doubt among our citizens. The government is fully committed to promoting digital payments through UPI.

The Payments Council of India (PCI) has suggested that 0.3% MDR should be imposed on large merchants (whose turnover is high). Regarding which media reports claimed that the government can impose merchant charge on UPI. However, the Finance Ministry has denied this. MDR on credit/debit cards is 0.9% to 2%. There is no charge on RuPay credit card.

It was also said in media reports that Free UPI has made India number one in the world in digital payments, but now there is a need to protect banks and payment providers from losses. This need can be met by imposing fees on large transactions. In such a situation, the government is preparing to implement this fee. It was being said that before implementing it, discussions will be held with banks and finance companies. Then after consultation, it will be implemented in 12 months. However, the government said that all these are rumors.

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