No plans to levy charges on UPI transactions

UPI is a digital public good that provides financial services to the population. The Finance Ministry stepped in on Sunday

clarification of their concerns regarding cost recovery for this service have been met through other means

The Finance Ministry has finally responded to recent market speculations by coming out with a clear statement that there are no plans for charges in payment systems.

In an interesting move, the Reserve Bank of India has asked stakeholders if they want to bring back MDRs for UPI transactions

This fee is charged by merchants when customers make purchases with credit cards or debit cards at their stores and will be Sapphire's responsibility

as well should we choose not only accepting payments through this mode but also providing fraud protection

The Centre has allocated a budget of Rs 200 crore for the promotion and reimbursement on digital payments in FY23

This funding will be used to support RuPay debit card transactions up until 2 thousand, as well BHIM UPI transaction that exceed this amount."

MDR, or merchant discount rate, on UPI transactions has been a long-standing demand of the payments industry.