UPI free for users, merchants may face ‘nominal’ fee: Government

The government on Saturday said consumers and small merchants will continue to use Unified Payments Interface (UPI) services free of charge, seeking to dispel concerns over possible transaction fees following Parliament’s move to amend the Payment and Settlement Systems Act, 2007.

The Finance Ministry said any Merchant Discount Rate (MDR), if introduced, would apply only to a limited category of merchant transactions above a specified threshold and would be nominal.