The Finance Ministry has firmly denied speculation that the government is planning to impose Merchant Discount Rate (MDR) charges on Unified Payments Interface (UPI) transactions, calling such claims “completely false, baseless, and misleading”.
🔴 Key Highlights:
- Social media and news reports had suggested that MDR might be reintroduced for UPI transactions above ₹3,000, but the ministry has categorically denied these claims.
- The government remains committed to promoting digital payments, ensuring that UPI transactions remain free of MDR charges.
- Industry bodies like the Payments Council of India (PCI) had earlier urged the government to reconsider the zero MDR policy, citing financial sustainability concerns.
- UPI continues to dominate India’s digital payments ecosystem, accounting for 80% of retail transactions, with ₹25.14 lakh crore worth of transactions processed in May alone.
📢 Finance Ministry’s Statement:
“Speculation and claims that MDR will be charged on UPI transactions are completely false, baseless, and misleading. Such baseless and sensation-creating speculations cause needless uncertainty, fear, and suspicion among our citizens.”
⚠️ Strategic Impact:
- The clarification reassures businesses and consumers, ensuring that UPI transactions remain free of additional charges.
- The government’s stance reinforces its commitment to digital financial inclusion, keeping UPI accessible to all.
👉 What do you think? Should MDR be introduced for high-value UPI transactions, or should the zero-charge policy continue? Drop your thoughts in the comments!
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