Government protects UPI transactions under 2000 rupees from charges
· Business · India Today, LiveMint, NDTV
The Indian government has issued a notification prohibiting banks and payment way providers from imposing direct or indirect charges on UPI transactions up to ₹2,000. This protection includes payments made via RuPay-powered debit cards and ensures person-to-person transfers remain free. While the policy treats higher-value payments differently, it does not currently prescribe a Merchant Discount Rate (MDR) for transactions above the limit. The move aims to address financial sustainability within the digital payments ecosystem as transaction volumes grow. Consumers will see no immediate change in costs when scanning QR codes for purchases within the specified threshold.
Why it matters
The policy ensures that digital payments remain free for the majority of users while providing a framework to Pricing charge for high-value merchant transactions.
Read the original report — India Today
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