UPI Payments to Remain Free for Consumers, Small Merchants: Payments Council of India
- On Friday, the Payments Council of India stated that consumers and small merchants are unlikely to face charges for Unified Payments Interface transactions, even as Parliament moves to amend payment laws.
- The Lok Sabha passed a Bill to amend the Payment and Settlement Systems Act, empowering the Centre to notify which electronic payment modes may attract charges in the future.
- Finance Minister Nirmala Sitharaman said on Thursday that the Merchant Discount Rate , if introduced, would apply to merchants and not customers, while the NPCI has yet to decide on implementation.
- The PCI emphasized that banks and fintech firms have invested heavily in cybersecurity and fraud prevention, adding that "merchant service charges are commercial arrangements between merchants and payment service providers and do not translate into charges for consumers."
- Any decision on charges will only follow passage of the Taxation and Other Laws Bill, 2026, as the industry stresses that continued investment in security and innovation remains essential for UPI's growth.
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No UPI Charges for Users: Centre explains MDR framework
The Government of India wishes to categorically state: No charges for users: Consumers making payments will not face any transaction charges. P2P transactions free: All Person-to-Person transactions will continue to be free of charge. Nominal MDR for merchants: As and when MDR charges are introduced, they will apply only to a limited set of merchant transactions, above a certain threshold, at a nominal rate, far lower than debit or credit card M…
No UPI charges for users, most merchant payments free too: Govt
New Delhi: Allaying fears over the possible imposition of charges on Unified Payment Interface (UPI) transactions, the government on Saturday, August 8, clarified that consumers and small merchants will continue to enjoy free UPI services despite the passage of a Bill amending the Payment and Settlement Systems Act, 2007. However, a nominal Merchant Discount Rate (MDR) for merchants will be applicable as and when charges are introduced. “They wi…
No charges on UPI for users, major transactions to remain free for merchants | All you need to know
Amidst the growing speculation of a charge on UPI users for payments of more than Rs 2000, the finance ministry cleared the air and stated that no such charges will be put in place for the users and small merchants.
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