Banks Cannot Impose Charges on UPI Payments of up to Rs 2,000, Govt Says
NPCI said consumers will keep paying nothing as the new merchant fee is used to fund infrastructure, cybersecurity and support for UPI growth.
- On Tuesday, the Indian government barred banks from imposing charges on Unified Payments Interface transactions up to Rs 2,000 and RuPay debit card payments, classifying them as "electronic modes of payment" under a new official notification.
- This regulation follows August's passage of the 2026 Taxation and Other Laws Amendment Bill, which provided the legal framework enabling the government to potentially introduce a Merchant Discount Rate on larger digital transactions.
- Starting October 15, a 0.4% MDR will apply to person-to-merchant payments exceeding Rs 2,000, while small vendors receiving under Rs 1 lakh monthly and all person-to-person transfers remain exempt from these fees.
- Congress leader Rahul Gandhi criticized the move, alleging the government is "once again surrendering" to American pressure and quietly paving the way for imposing fees on all UPI transactions.
- Officials argue the tiered fee structure ensures UPI infrastructure self-sustainability, funding essential investments in cybersecurity and innovation while protecting the vast majority of consumer transactions under Rs 2,000.
91 Articles
91 Articles
Centre introduces 0.4% MDR on UPI payments above ₹2,000 made to merchants
From October 15, a 0.4% merchant discount rate applies to UPI person-to-merchant payments over 2,000, with consumers unaffected; person-to-person.UPI charges, merchant discount rate, UPI payment changes, new UPI fees, digital payment updates, person-to-merchant payments, finance ministry UPI, NPCI transaction fees, UPI infrastructure investment, digital investing costs, essential sector payments, utility bill payments UPI, educational fee paymen…
UPI transactions above Rs 2,000 to attract 0.4% MDR, capped at Rs 300
UPI transactions above Rs 2,000 will attract a Merchant Discount Rate (MDR) of 0.4 per cent under a revised framework introduced by the National Payments Corporation of India (NPCI), while consumers will continue to transact free of cost using UPI.
Modi Govt Paving Way For UPI Fees, Surrendering To US Pressure: Congress Attacks BJP
The Congress has targeted the Modi government following a notificaiton on UPI transactions with Rahul Gandhi alleging that it has quietly paved the way for imposing fees on such transactions and that a 'compromised' Prime Minister Narendra Modi was 'once again surrendering' to American pressure.
Banks’ Panel to Soon Decide on UPI Merchant Charges Above Rs 2,000
According to sources, the committee would soon take decision on Merchant Discount Rate (MDR) on UPI transaction above Rs 2,000 based on various factors including self-sustainability and market expansion.
‘Quietly opened the door to UPI fees’: Rahul Gandhi slams Modi govt over UPI transaction charges
Rahul Gandhi accused the Modi government of opening the door to UPI transaction fees, alleging US pressure behind the move. The Centre's notification bars charges on UPI/RuPay payments up to ₹2,000, while citing cybersecurity and infrastructure costs as reasons for the broader MDR framework.
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