A new information regarding UPI has
raised question among users whether they have to pay for every single digital
transaction.
There will be no charges on people to people transactions that will be only for merchants for the
transactions above 2000/-.UPI transaction will be implemented from October 15,2026.
What is changing?
Under the new framework, a 0.4%
MDR{merchant discount rate}will
apply to specified UPI payments made to merchants above βΉ2,000. High-value
transactions of βΉ75,000 and above will have the MDR capped at βΉ300 per
transaction.The government has also clarified that consumers should not be
charged this MDR directly. Small merchants receiving up to βΉ1 lakh per month
through eligible UPI QR-code payments will continue to receive zero-MDR
protection.
Will UPI become a paid service
for everyone?
No the latest goverment has confirmed that UPI
is not becoming a paid service app on normal transactions
1.People to people tranfers will stay free,there will be no single charges on the amount
2.Merchant payments tranfers will be free upto
2000/-
Why is the change important?
UPI has become a central part of India's digital-payment ecosystem. The new framework therefore marks a significant change in how certain merchant transactions are funded.At the same time, the government's clarification means that ordinary person-to-person payments will continue without MDR, while the new charges are focused on specified merchant transactions above the βΉ2,000 threshold.
With the new framework scheduled to take effect on October 15, 2026,
users and businesses will be watching closely to understand how payment
providers and merchants implement the changes.
Final Takeway
The details around UPI charges should be treated
carefully, as the final rules have not be officially confirmed yet. Users have
to wait for an officially announced news before assuming that charges will
going to apply to their regular UPI payments
Discussion & Comments (4)
Leave a Comment