FM Sitharaman Clarifies UPI MDR; No Charge Below ₹2,000 - The Economic Times Video
- Finance Minister Nirmala Sitharaman said UPI Merchant Discount Rate charges will not be passed on to consumers.
- NPCI said the 0.4% MDR applies only to eligible person-to-merchant UPI transactions above Rs 2,000, with a maximum charge of Rs 300.
- Payments up to Rs 2,000 account for more than 96% of UPI merchant transaction volume and remain free of MDR, so most payments will not incur MDR or related GST.
12 Articles
12 Articles
NPCI says 96% of UPI merchant payments face no GST impact
NPCI has clarified that the new MDR on select UPI merchant payments will not affect most transactions. The update underlines that low-value payments and small merchants largely remain outside the fee and related GST impact.
Regarding UPI Payments MDR, Finance Minister Nirmala Sitharaman has once again clarified that it is neither a tax nor a cess. It is a charge levied by service providers to improve the system and provide better service; there is no charge for small transactions.
FM Sitharaman clarifies UPI MDR; no charge below ₹2,000 - The Economic Times Video
Finance Minister Nirmala Sitharaman has clarified the new UPI Merchant Discount Rate framework, stating that consumers will not bear MDR charges. UPI payments to merchants up to ₹2,000 will remain free, while specified higher-value merchant transactions may attract MDR. Person-to-person UPI transfers will continue without charges, according to the government.
'No burden for consumers': Sitharaman clarifies who will pay MDR on UPI transactions
Finance Minister Nirmala Sitharaman addressed concerns over the Merchant Discount Rate charges, emphasizing that UPI users will face no additional financial burden. These charges apply solely to payment operators and do not treat consumers as taxpayers. The revised rule targets only high-value Person-to-Merchant UPI transactions, meaning most users will transact without incurring extra fees. The government has expressed its commitment to this de…
MDR on UPI Transactions Will Not Be Passed on to Consumers: Nirmala Sitharaman
Get latest articles and stories on India at LatestLY. Union Finance Minister Nirmala Sitharaman on Monday emphasized that the Merchant Discount Rate (MDR) transaction charges on UPI payments will not be passed on to the consumers. India News | MDR on UPI Transactions Will Not Be Passed on to Consumers: Nirmala Sitharaman.
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