The finance ministry debunked claims that the newly introduced Merchant Discount Rate on certain merchant UPI payments resulted from foreign pressure.
The ministry stated that the framework aims to build a self-sustaining digital payments ecosystem, ensuring person-to-person transfers and payments under ₹2,000 remain free.
The government noted that larger merchant transactions above ₹2,000 will attract a 0.4% fee, while essential services will incur a flat ₹5 fee.