# UPI stays free for users, limited merchant fees possible later

2026-08-08T22:30:45+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

The government on Saturday assured that UPI will remain free for users, with all person-to-person transactions and most merchant payments continuing without charges. A nominal Merchant Discount Rate (MDR) of 0.25% to 0.4% may be allowed only for certain merchant transactions above Rs 2,000, as per officials. The clarification follows the Lok Sabha's passage of a Bill amending the Payment and Settlement Systems Act, which creates an enabling framework for potential charges. The government dismissed reports of external pressure, calling them unfounded. The final decision on MDR rests with the NPCI-led steering committee.

## Coverage

- timesofindia.indiatimes.com <https://timesofindia.indiatimes.com/india/proposed-mdr-for-upi-transactions-will-be-nominal-says-govt/articleshow/133059265.cms>
- english.mathrubhumi.com <https://english.mathrubhumi.com/news/india/upi-remains-free-2026-mdr-policy-update-j5l42zbb>
- thehindu.com <https://www.thehindu.com/business/Economy/upi-stays-free-for-users-vast-majority-of-transactions-to-remain-free-for-merchants-as-well-says-government/article71323950.ece>

Tags: digital payments, Finance Ministry, MDR, NPCI, UPI
Canonical: https://indianopinion.org/upi-stays-free-for-users-nominal-merchant-fee-likely-above-rs-2000/
License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources.
Cite: https://indianopinion.org/upi-stays-free-for-users-nominal-merchant-fee-likely-above-rs-2000/#story-in-brief

Review state: restored archive article, accurate at time of publication, not offered to search indexes.