# Proposal May Allow MDR Charges on Some UPI Payments 2026-08-06T11:21:32+00:00 | Governance | Indian Opinion Desk Corroboration: 2 independent outlets UPI payments have so far been free for users. The government has introduced an amendment to the Payment and Settlement Systems Act, 2007, which would remove the legal provision requiring zero charges on electronic payments. This could allow banks and UPI companies to charge merchants for certain transactions. The Economic Times, citing a Times of India report, said the Centre may permit a 0.25% to 0.4% Merchant Discount Rate on business payments above Rs 2,000. It said person-to-person transfers would likely remain exempt. However, the government has not officially confirmed the proposed rate or whether merchants could pass costs to customers. ## Coverage - thehindu.com - economictimes.indiatimes.com Tags: digital payments, MDR, Parliament, RBI, UPI Canonical: https://indianopinion.org/proposed-upi-mdr-may-apply-to-business-payments-above-rs-2000/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/proposed-upi-mdr-may-apply-to-business-payments-above-rs-2000/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.