Social Media Reports: New Fees On UPI Transactions?

Every other month, we keep hearing new updates and reports about the possibility of imposition of transaction fees on UPI payments in India. And considering the fact that this is the most used transaction procedure in the country, there is a lot of anticipation on the same as well.

In accordance with this, there is a new line of speculation regarding the possible imposition of transaction fees on all UPI transactions above ₹2000 from now on.

The government has proposed allowing merchant charges on select UPI payments. If approved, transactions above ₹2,000 to large businesses may attract MDR, while consumers are likely to remain unaffected. But the fundamental point to be noted, here is not the general public and their general transactions will not be eligible for these transaction fees and they will remain completely free.

There are no charges for making UPI transactions above ₹2,000 for individuals. Normal bank-to-bank UPI transfers remain completely free for everyday users and customers. The rules regarding charges for UPI transactions above ₹2,000 apply exclusively to merchants and businesses, not to individual customers.

But nevertheless, an official communication to this effect from the central government is expected to be made very soon in order to settle the confusion in the public.