FM rules out UPI charges for consumers; says no MDR framework finalised yet

With speculation over proposed charges on UPI transactions continuing to grow, Finance Minister Nirmala Sitharaman on Monday reiterated that consumers will not have to pay any charges for UPI transactions. She said the amendment under the Taxation and Other Laws (Amendment) Bill, 2026, is only an enabling provision and does not impose any tax or transaction charge on UPI users.

Sitharaman said no Merchant Discount Rate (MDR) framework has yet been finalised. The UPI and Services Steering Committee, headed by the National Payments Corporation of India (NPCI), will consider and decide whether any MDR should be introduced and, if so, its scope and structure.