Now Reading: 0.4% UPI merchant fee from Oct 15, consumers spared
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0.4% UPI merchant fee from Oct 15, consumers spared
The government will levy a 0.4% Merchant Discount Rate (MDR) on UPI payments above Rs 2,000 made to merchants from October 15. The fee is capped at Rs 300 per transaction and…
The government will levy a 0.4% Merchant Discount Rate (MDR) on UPI payments above Rs 2,000 made to merchants from October 15. The fee is capped at Rs 300 per transaction and is paid by merchants, not customers. Person-to-person transfers and UPI AutoPay recurring payments remain free. Small merchants receiving up to Rs 1 lakh monthly are exempt.
Opposition MPs called the move 'anti-people' in a parliamentary panel meeting, accusing the government of bowing to US pressure. The finance ministry denied foreign influence, saying India's UPI policy is independent. The All India Petroleum Dealers Association has sought exemption for fuel transactions, where even a flat Rs 5 charge could strain thin margins.
Indian Opinion Analysis
The Opposition's 'anti-people' charge and the government's denial of foreign influence frame the same policy differently: critics highlight the end of zero-MDR and the potential regressive burden on small businesses, while the government emphasises consumer exemptions and the need for a self-sustaining system. Neither side disputes that person-to-person transfers remain free. Lost in the political exchange is the nuanced exemption for small merchants and the flat Rs 5 charge for fuel, which fuel dealers are now demanding be extended. The panel's next meeting will show whether the opposition can force a rollback.
Coverage: 7 sources, 1 government-critical, 6 neutral
Sources (7): ndtv.com (neutral report), hindustantimes.com (neutral report), thehindu.com (neutral report), news.abplive.com (neutral report), newindianexpress.com (government critical), indiatoday.in (neutral report), timesnownews.com (neutral report)
This brief was synthesised by AI from the 7 sources linked above, so one read covers every framing they carry.
Updated: this story now draws on 7 sources.
