UPI Transactions Fees: Big News! Fee will be levied on UPI payments of more than Rs 3000? know the government’s stance

The Finance Ministry posted on a social media platform saying that the government has no such plans right now. The speculations and claims of charging MDR on UPI transactions are completely false, baseless and misleading.

UPI Transactions Fees: The Finance Ministry has clarified its stand amid speculations about Unified Payments Interface (UPI) charges. Media reports claimed that the government may re-implement the 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.

The Finance Ministry posted on the social media platform saying that the government has no such plan right now. The 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.

What was claimed

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, talks 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.

Retail has 80 percent share of UPI

UPI now has 80 percent retail transaction share. At the same time, the number of merchant payments is also increasing. Apart from this, since 2020, the total value of merchant payments on UPI has reached ₹ 60 lakh crore.

The post UPI Transactions Fees: Big News! Fee will be levied on UPI payments of more than Rs 3000? know the government’s stance first appeared on informalnewz.

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