Now Reading: UPI stays free for users, limited merchant fees possible later
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UPI stays free for users, limited merchant fees possible later
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…
The Story in Brief
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.
The Indian Opinion
The government's denial of external pressure rings hollow to some, but the facts show UPI was launched free and remains so. The bigger worry is that a nominal MDR, even on a limited set of merchant transactions, could become a slippery slope. Critics like Jairam Ramesh rightly ask whether merchants will pass the cost to consumers. The real test will be the NPCI committee's actual decision on the threshold and rate. Will it be set low enough to keep digital payments inclusive, or will it open the door to gradual expansion of charges?
Sources (3): timesofindia.indiatimes.com, english.mathrubhumi.com, thehindu.com
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
