No UPI charges for users, but nominal MDR may apply to select merchant payments: Govt

UPI payments will remain free for consumers and the vast majority of merchant transactions, the Centre clarified on Saturday, allaying fears regarding the levy of charges on such transactions following the passage of a Bill to amend the Payment and Settlement Systems Act, 2007.

However, the government left the door open for a nominal Merchant Discount Rate (MDR), which will be applicable as and when charges are introduced.