Government Clarifies UPI Framework Will Keep P2P Transfers And Small Merchant Payments Free
· Business · Hindustan Times, India Today
The Indian government has clarified that the upcoming Unified Payments Interface framework will not levy charges on individuals for routine transactions. Person-to-person transfers of any amount and payments to merchants up to ₹2,000 will remain completely free for customers. Starting October 15, a Merchant Discount Rate of 0.4% will apply only to specified merchant transactions above ₹2,000, which will be paid by merchants rather than users. Additionally, small merchants receiving up to ₹1 lakh per month will face zero MDR charges. P2P transfers account for roughly 70% of total UPI transaction value by volume.
Why it matters
The clarification protects everyday consumers and small businesses from transaction fees, ensuring digital payments remain free and accessible across India.
Read the original report — Hindustan Times
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