UPI Payments May No Longer Be Free? Government Eyes Merchant Charges
Edited By WION Video Desk
Published: Aug 06, 2026, 24:31 IST | Updated: Aug 06, 2026, 24:31 IST
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.
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