US EditionExclusive: Government Weighs Charges On UPI Payments Over Rs 3,000
- The government is considering reintroducing the Merchant Discount Rate on UPI payments over Rs 3,000 to help banks manage costs.
- Banks and payment service providers have expressed concerns about the costs associated with managing high-value digital transactions.
- The Payments Council of India has proposed a 0.3% MDR for large merchants under UPI transactions, while indicating that small-ticket UPI payments may remain exempt.
- Currently, UPI dominates 80% of digital retail transactions, with no Merchant Discount Rate on transactions above Rs 2,000.
12 Articles
12 Articles
Will UPI transactions be costly? Govt may consider charges on payment above THIS amount - Check details
India has witnessed an unprecedented rise in digital transactions, and the centre of this revolution is the Unified Payments Interface (UPI). According to data released by the National Payments Corporation of India (NPCI), transactions through UPI touched a record high of Rs 25.14 lakh crore in May 2025. But this has led to financial pressure on banks. The government is reportedly considering reintroducing the Merchant Discount Rate (MDR) to pro…
UPI Transactions Over ₹3,000 to Face Charges? Here’s What We Know
As UPI (Unified Payments Interface) continues to dominate digital transactions across India, reports suggest that the central government is considering imposing Merchant Discount Rate (MDR) charges on high-value UPI transactions to address rising operational costs for banks and payment service providers.
Govt Plans Levying MDR On UPI Transactions Over INR 3,000
Update | June 12, 12:06 AM Hours after it was reported that the Centre is mulling levying MDR on UPI transactions above INR 3,000, the finance ministry termed the report speculative, baseless and misleading. “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…
No Plan To Levy MDR Charge On UPI Transactions, Clarifies Finance Ministry
New Delhi: The Union Finance Ministry on Wednesday dismissed reports that an additional charge will be levied on UPI transactions. “Speculation and claims that the MDR (merchant discount rate) 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 to promoting dig…
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