India's free UPI payment ecosystem could soon witness its biggest policy shift since launch. The government has proposed amendments to the Payment and Settlement Systems Act that create a legal framework for introducing Merchant Discount Rate (MDR) on selected digital payment modes in the future.

While no immediate charges have been announced, reports suggest the government is considering a 0.25% to 0.4% merchant fee on UPI transactions above ₹2,000 made to businesses. Person-to-person transfers are expected to remain free, while larger merchants could bear the charges based on their annual turnover.

UPI Payments May No Longer Be Free? Government Eyes Merchant Charges

The nation introduced banknotes in 1661 and installed Europe’s first automatic teller machine in 1967. It was the first European country to issue banknotes.

This European country went cashless and embraced a digital economy!

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UPI Payments May No Longer Be Free? Government Eyes Merchant Charges

This European country went cashless and embraced a digital economy!