India Imposes 0.4% UPI Merchant Fee Above ₹2,000 as Congress Alleges US Pressure
Updated
Updated · The Hindu · Sep 16
India Imposes 0.4% UPI Merchant Fee Above ₹2,000 as Congress Alleges US Pressure
3 articles · Updated · The Hindu · Sep 16
Summary
October 15 will mark the start of a 0.4% MDR on UPI merchant payments above ₹2,000, ending zero-fee processing for larger business transactions while leaving person-to-person transfers and small payments untouched.
The finance ministry said customers will pay nothing and keep unlimited free UPI usage, framing MDR as a charge within the merchant payment ecosystem rather than on consumers.
Congress seized on the move a day later, saying it reflects U.S. pressure after the U.S. Trade Representative criticized free UPI for hurting Visa and Mastercard, and questioning why the fee matches debit-card MDR at 0.4%.
Jairam Ramesh said UPI's roughly ₹20,000 crore annual operating cost is manageable relative to RBI transfers to the government, while BJP accused Congress of spreading fake news by implying users would be charged directly.