Finance Minister Nirmala Sitharaman has said the newly announced Merchant Discount Rate (MDR) related to UPI transactions will not be imposed on customers. She stressed that the charge is to be borne by merchants and is not a tax, cess or any additional levy by the government.
The National Payments Corporation of India (NPCI) has issued a notification on fees for businesses receiving digital payments via UPI. As per the announcement, merchants receiving payments above Rs 2,000 will pay a 0.4% fee, with a cap of Rs 300 even if the transaction value is Rs 75,000 or more.
For essential sectors such as railways, telecom and fuel, a flat fee of Rs 5 has been specified. Separately, UPI transactions linked to stock market trading will attract a 0.02% charge.
Responding to criticism from opposition parties, Sitharaman said the collected amount does not go to India’s Consolidated Fund and therefore should not be portrayed as a government-imposed charge. She added that even merchants will not be charged for transactions below Rs 2,000.
