No MDR fee for digital payments via UPI: Finance Ministry
In a post on X, the finance ministry dismissed reports suggesting that an MDR would be levied on UPI transactions
In a post on X, the finance ministry dismissed reports suggesting that an MDR would be levied on UPI transactions
In a post on X, the finance ministry dismissed reports suggesting that an MDR would be levied on UPI transactions
New Delhi: The finance ministry on Wednesday dismissed reports suggesting that a Merchant Discount Rate (MDR) would be levied on Unified Payments Interface (UPI) transactions, calling them "false, baseless, and misleading."
In a post on X, the ministry said, “Speculation and claims that MDR will be charged on UPI transactions are completely false. Such baseless and sensational claims create unnecessary fear, uncertainty, and suspicion among citizens. The government remains fully committed to promoting digital payments via UPI.”
MDR is a fee paid by merchants to banks for accepting digital payments, usually calculated as a percentage of the transaction amount. The ministry’s clarification came in response to media reports claiming that the government was planning to impose MDR on high-value UPI transactions.
Meanwhile, UPI usage continues to grow. According to data released by the National Payments Corporation of India (NPCI), UPI transactions hit a record ₹25.14 lakh crore in May, a 5% increase from ₹23.94 lakh crore in April. The number of transactions also rose to 1,867.7 crore in May from 1,789.3 crore the previous month. Year-on-year, the value of UPI transactions in May was 23% higher than the ₹20.44 lakh crore recorded in the same month last year.