UPI Fee Uncertainty: Who Pays If Charges Above ₹2,000 Are Introduced?
- UPI charges above ₹2,000 remain under discussion, with no confirmed rate yet.
- Merchants, not consumers, are expected to bear any future MDR costs.
- A survey found 53% would shift from higher-value UPI payments if fees reached them.
India’s move to allow possible fees on UPI payments above ₹2,000 has raised questions about the future of free digital transactions.
While Congress alleges a 0.5% charge will hit consumers, the finance ministry’s notification sets no such rate. The gap matters for shoppers, merchants, and investors trying to determine who ultimately bears the extra payment costs.
What Is the Proposed UPI Charge?
The notification protects UPI transactions up to ₹2,000 and RuPay debit card payments from bank or payment-provider charges. However, it leaves room for a Merchant Discount Rate, or MDR, on selected larger merchant transactions. D…
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