Mumbai8 minutes ago
- Copy link
The Finance Ministry has said that there is no plan to impose any kind of charge on UPI transactions.
Paytm’s parent company One 97 Communication shares fall down by 10% on Thursday. The share prize fell by about 50 rupees to ₹ 864.40. The reason for this decline is believed to be the statement of the Finance Ministry, which is not charged on UPI payment.
In fact, for the last few months, the news of imposing merchant discount rate (MDR) on UPI transactions was in discussion. This charge could have benefited Fintech companies. But yesterday, the Finance Ministry made it clear that there is no plan to charge any kind of charge on UPI transactions.
The Finance Ministry has posted the news of charging the charge on UPI transactions by posting on X on Wednesday (June 11) as misleading and baseless. The ministry said that, ‘Such baseless and sensational reports create fear and doubt among the people. The government is committed to promoting digital payment from UPI.
There was news of charging charge on UPI transaction viral
Earlier, it was claimed in some media reports that the central government can charge more than Rs 3,000 UPI transactions from shopkeepers i.e. merchant. For this, 0.3% merchant discount rate (MDR) can be re -implemented. That is, if you pay more than Rs 3,000, then the shopkeeper will have to pay a fee of up to Rs 9 to the bank.
A media report claimed that new rules could be implemented in 2 months. New rules can be brought in view of increasing infrastructure and operational expenses of banks and payment service providers. Recently, PMO, Ministry of Finance and other departments have met. The policy will be implemented only after discussion with all stakeholders (banks, fintech companies, NPCI).
UPI transaction increased by 4% in a month
In May 2025, 18,67 crore transactions took place through Unified Payment Interface (UPI). During this period, a total amount of Rs 25.14 lakh crore was transferred during this period. The number of transactions has increased by 4% in a month.
Payment Council of India wrote letters to Prime Minister
Earlier, the Payment Council of India wrote a letter to Prime Minister Modi. The letter has demanded PM Modi to reconsider the Zero Merchant Discount Rate (MDR) policy. Council, Unified Payments Interface (UPI) and RuPay debit card transactions are in favor of imposing 0.3% merchant discount rate.
The Economic Times has given this information quoting two senior bank officials as saying. Currently, no merchant discount rate (MDR) is imposed on these payment methods, as the National Payments Corporation of India (NPCI) provides facility.
How does MDR work and why removed it?
Prior to 2022, merchants had to pay less than 1% MDR of transaction amount to banks. However, the government removed these charges in the financial year-22 budget to promote digital payment. Since then UPI has become the most used payment method and Rupay has also become quite popular.
Meanwhile, the industry’s insidars say that large retail merchants averages with more than 50% payment card. Therefore, a small fee is unlikely to have any major impact on UPI payment.
Source link
[ad_3]
