Banks Cannot Impose Charges on UPI Payments of up to Rs 2,000, Govt Says
- On October 15, 2026, the National Payments Corporation of India will implement a 0.4% Merchant Discount Rate on person-to-merchant UPI transactions exceeding ₹2,000, while consumers continue transacting free of cost.
- This framework aims to support infrastructure resilience and cybersecurity investments; crucially, person-to-person transfers and small transactions under ₹2,000 remain entirely free, preserving access for most consumers.
- Essential services like Railways and fuel face a flat ₹5 fee, while stock investments attract 0.02% MDR; all fees remain capped at ₹300 per transaction, limiting merchant burden.
- Finance Minister Nirmala Sitharaman stated most transactions remain unaffected, though the Opposition Congress attacked the notification on Tuesday, alleging it facilitates broader UPI fee implementation.
- Currently accepted in 11 countries, UPI continues its global expansion; a 22-member committee will oversee the framework's evolution, balancing market sustainability with system growth.
86 Articles
86 Articles
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.
'Compromised PM Modi again surrendering to US pressure': Rahul on govt's UPI move
New Delhi, Sep 15 (PTI) Congress leader Rahul Gandhi on Tuesday alleged that the Modi government has quietly paved the way for imposing fees on UPI transactions and that a “compromised” Prime Minister Narendra Modi was “once again surrendering” to American pressure. The Congress raised questions over the government’s notification on UPI transactions, claiming that […]
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