No charges for UPI users, most transactions to remain free for merchants: Govt

The Finance Ministry on Saturday clarified that consumers making payments through UPI will not face any transaction charges and all person-to-person (P2P) payments will continue to remain free of charge.

In a statement, the Finance Ministry said that as and when Merchant Discount Rate (MDR) charges are introduced, they will apply only to a limited set of merchant transactions above a certain threshold, at a nominal rate far lower than debit or credit card MDRs.