Economy
Government Clarifies UPI Charges for Consumers and Merchants
livemint2h
THE BRIEF
1
The government confirmed on Saturday that UPI remains free for consumers and small merchants, following the passage of the Taxation and Other Laws (Amendment) Bill, 2026.
2
Future Merchant Discount Rate (MDR) charges, if implemented, will only apply to a limited set of business transactions above a specific threshold at a nominal rate.
3
The amendment aims to make the UPI ecosystem self-sustainable, with potential charges of 0.25% to 0.4% on business-directed transactions exceeding ₹2,000.