No fee to be charged for UPI transactions, clarifies finance ministry

There were reports that the authorities is readying to enforce Merchant Discount Rate connected large-ticket UPI transactions

The concern ministry has said nary Merchant Discount Rate (MDR) volition beryllium levied connected transactions done Unified Payments Interface platforms.

"Speculation and claims that the MDR volition beryllium charged connected UPI transactions are wholly false, baseless and misleading," the ministry said connected X connected Wednesday.

"Such baseless and sensation-creating speculation causes needless uncertainty, fearfulness and suspicion among our citizens. The authorities remains afloat committed to promoting integer payments via UPI," it said.

MDR is the outgo paid by a merchant to a slope for accepting outgo from their customers via integer means. The merchant discount complaint is expressed successful percent of the transaction amount.

The ministry's clarification came pursuing immoderate reports that the authorities is readying to enforce MDR connected large-ticket UPI transactions.

Meanwhile, transactions done UPI touched a grounds precocious of Rs 25.14 lakh crore successful May, signaling a maturation of 5 per cent implicit the preceding month, according to information released by the National Payments Corporation of India (NPCI).

The UPI transactions’ worth was Rs 23.94 lakh crore successful April.

In presumption of volume, 1,867.7 crore transactions were done successful May against 1,789.3 crore successful the erstwhile month.

NPCI said the worth of the transactions past period was 23 per cent higher arsenic compared to Rs 20.44 lakh crore successful the year-ago period.