Govt clarifies UPI to remain free; MDR may apply to large merchants later

UPI transactions will remain free for users, with no transaction charges for consumers.

A merchant discount rate (MDR) may apply to large merchants above a certain threshold, but at a lower rate than credit and debit cards.

Peer-to-peer (P2P) transactions will continue to remain free, as per the government's clarification.

The UPI and Services Steering Committee will decide on a potential MDR once Section 10A of the Payment and Settlement Systems Act is amended.