In a major relief for consumers, UPI charges in India will not be levied on them. The Payments Council of India (PCI) clarified the confusion. It said that consumers and small businesses will be spared from paying UPI charges in India.
According to reports, the Parliament has passed a law allowing the government of India to notify a Merchant Discount Rate (MDR). This will be an amount that will be applicable only on certain digital payments.
MDR is a fee that will be to banks by merchants for accepting digital payments. It shall not be applicable to consumers. The Government has clarified that MDR, will apply to merchants.
It is worth mentioning here that, as many as 95% of UPI transactions are below Rs. 2,000 and will be fee-free. MDR will be applicable to higher-value merchant transactions, reports further clarified.
Reports say that, the Lok Sabha has passed a bill to allow charges on UPI transactions. But the charges will not apply to small merchants and consumers, the PCI clarified.
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