{"id":9775,"date":"2026-08-07T14:56:52","date_gmt":"2026-08-07T14:56:52","guid":{"rendered":"https:\/\/koshalsambada.in\/?p=9775"},"modified":"2026-08-07T14:56:52","modified_gmt":"2026-08-07T14:56:52","slug":"will-you-have-to-pay-to-use-upi-7-faqs-on-possible-mdr-and-what-it-means-for-consumers-answered","status":"publish","type":"post","link":"https:\/\/koshalsambada.in\/?p=9775","title":{"rendered":"Will you have to pay to use UPI? 7 FAQs on possible MDR and what it means for consumers answered"},"content":{"rendered":"<p><br \/>\n<\/p>\n<div>\n<div class=\"e9jwa\">\n<div class=\"vdo_embedd\">\n<div class=\"GfdvZ\">\n<section class=\"_bIDB  clearfix id-r-component leadmedia undefined undefined  E9tg9 \" style=\"top:0px\">\n<div class=\"_bIDB\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">\n<div class=\"ypVvZ\">\n<div class=\"WGttI\"><img src=\"https:\/\/static.toiimg.com\/thumb\/msid-133036004,imgsize-463361,width-400,height-225,resizemode-4\/upi.jpg\" alt=\"Will you have to pay to use UPI? 7 FAQs on possible MDR and what it means for consumers answered\" title=\"UPI has always been free for consumers since its launch in 2016. (Image: Stock.adobe)\" decoding=\"async\" fetchpriority=\"high\"\/><\/div>\n<\/div>\n<\/div>\n<div class=\"Ta7d_ img_cptn\"><span title=\"UPI has always been free for consumers since its launch in 2016. (Image: Stock.adobe)\">UPI has always been free for consumers since its launch in 2016. (Image: Stock.adobe)<\/span><\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\n<p>Will you now have to pay charges for your UPI transactions? That\u2019s the big question that many are asking after the Lok Sabha cleared a Bill amending the Payment and Settlement Systems Act, 2007, enabling the government to authorise banks and other payment service providers to impose charges on transactions carried out through the Unified Payments Interface (UPI) and other electronic payment modes that may be notified.<span class=\"id-r-component br\" data-pos=\"2\"\/>The amendment removes the existing legal restriction that bars banks and payment service providers from collecting Merchant Discount Rate (MDR) on notified electronic payment modes.<span class=\"id-r-component br\" data-pos=\"4\"\/><span class=\"id-r-component br\" data-pos=\"6\"\/><a href=\"https:\/\/timesofindia.indiatimes.com\/india\/government-may-allow-fees-on-upi-payment-above-rs-2k\/articleshow\/132880274.cms\" styleobj=\"[object Object]\" class=\"\" commonstate=\"[object Object]\" frmappuse=\"1\" target=\"_blank\" rel=\"noopener\">The Times of India reported<\/a> that the government is expected to permit a Merchant Discount Rate (MDR) of between 0.25% and 0.4% on UPI transactions above Rs 2,000 made to businesses, while person-to-person payments are likely to remain outside the scope of the proposed levy.<span class=\"id-r-component br\" data-pos=\"11\"\/>The proposal is not expected to affect routine purchases such as milk, vegetables, groceries or payments for auto-rickshaw and taxi services.<span class=\"id-r-component br\" data-pos=\"13\"\/>Finance Minister <a href=\"https:\/\/timesofindia.indiatimes.com\/topic\/nirmala-sitharaman\" styleobj=\"[object Object]\" class=\"\" commonstate=\"[object Object]\" frmappuse=\"1\" target=\"_blank\" rel=\"noopener\">Nirmala Sitharaman<\/a> on Thursday said the Merchant Discount Rate on digital payment transactions is applicable to merchants rather than customers, adding that the levy would enable banks and fintech companies to strengthen investment in infrastructure and security.<span class=\"id-r-component br\" data-pos=\"17\"\/>Also Read | <a href=\"https:\/\/timesofindia.indiatimes.com\/business\/india-business\/someone-has-to-pay-the-cost-rbi-governor-on-mdr-proposal-for-upi-transactions-above-rs-2000\/articleshow\/132900715.cms\" styleobj=\"[object Object]\" class=\"\" commonstate=\"[object Object]\" frmappuse=\"1\" target=\"_blank\" rel=\"noopener\">\u2018Someone has to pay the cost\u2019: RBI governor on MDR proposal for UPI transactions above Rs 2,000<\/a><span class=\"id-r-component br\" data-pos=\"20\"\/><\/p>\n<p><h2>Charges on UPI transactions: FAQs<\/h2>\n<\/p>\n<p><span class=\"em\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">In case you are wondering what the charges are about and who will pay, here are seven FAQs answered by the Payments Council of India, a non-government organisation.<\/span><span class=\"id-r-component br\" data-pos=\"24\"\/><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">1. Will I have to pay to use UPI?<\/span><span class=\"id-r-component br\" data-pos=\"26\"\/>No. UPI has always been free for consumers since its launch in 2016. Every Indian can continue making instant digital payments without paying any transaction charges.<span class=\"id-r-component br\" data-pos=\"28\"\/><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">2. Will small shopkeepers or kirana stores be charged for accepting UPI?<\/span><span class=\"id-r-component br\" data-pos=\"30\"\/>No. Small merchants are not required to pay any charges (MDR) to accept UPI payments. UPI was designed to make digital payments accessible for even the smallest businesses across India, and protecting small merchants remains central to the ecosystem&#8217;s inclusive growth.<span class=\"id-r-component br\" data-pos=\"33\"\/><\/p>\n<div data-pos=\"0\" class=\"id-r-component iIpbx undefined  &#10;        \">\n<div><img decoding=\"async\" alt=\"UPI\" msid=\"133035833\" width=\"\" title=\"Who pays for your UPI?\" placeholdersrc=\"https:\/\/static.toiimg.com\/photo\/83033472.cms\" imgsize=\"\" resizemode=\"4\" offsetvertical=\"0\" placeholdermsid=\"47529300\" type=\"thumb\" class=\"\" src=\"https:\/\/static.toiimg.com\/photo\/msid-133035833\/upi.jpg\" data-api-prerender=\"true\"\/><\/p>\n<p>Who pays for your UPI?<\/p>\n<\/div>\n<\/div>\n<p><span class=\"id-r-component br\" data-pos=\"35\"\/><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">3. Why is there a discussion around <\/span><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">UPI charges<\/span><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\"> now?<\/span><span class=\"id-r-component br\" data-pos=\"39\"\/>UPI has evolved from a new payment platform into the world&#8217;s largest real-time payment system. As the ecosystem continues to expand, discussions are taking place on how to sustainably support the infrastructure that enables billions of secure transactions every month, while continuing to ensure that consumers and small merchants remain protected.<span class=\"id-r-component br\" data-pos=\"41\"\/>Also Read | <a href=\"https:\/\/timesofindia.indiatimes.com\/business\/india-business\/merchant-charges-for-upi-soon-ls-passes-bill-authorising-govt-to-allow-banks-to-levy-fees-top-facts\/articleshow\/133008920.cms\" styleobj=\"[object Object]\" class=\"\" commonstate=\"[object Object]\" frmappuse=\"1\" target=\"_blank\" rel=\"noopener\">Merchant charges for UPI soon? LS passes bill authorising govt to allow banks to levy fees &#8211; top facts<\/a><span class=\"id-r-component br\" data-pos=\"44\"\/><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">4. Who built and continues to invest in UPI?<\/span><span class=\"id-r-component br\" data-pos=\"46\"\/>For nearly 10 years, banks, payment companies, fintechs, NPCI and RBI have collectively invested in technology, cybersecurity, fraud prevention, innovation and customer support to build one of the safest and most reliable payment systems in the world.<span class=\"id-r-component br\" data-pos=\"49\"\/>These investments continue every day to keep UPI secure, resilient and available 24\u00d77.<span class=\"id-r-component br\" data-pos=\"51\"\/><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">5. If UPI is free, who bears the cost of operating it?<\/span><span class=\"id-r-component br\" data-pos=\"53\"\/>Operating a national payment infrastructure involves continuous investment in technology, fraud prevention, cybersecurity, compliance, customer support and innovation.<span class=\"id-r-component br\" data-pos=\"55\"\/>These costs are currently borne by ecosystem participants including banks and payment service providers who continue to invest so consumers can enjoy a safe, secure and seamless payment experience.<span class=\"id-r-component br\" data-pos=\"58\"\/><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">6. Would consumers have to pay if large merchants pay for payment acceptance?<\/span><span class=\"id-r-component br\" data-pos=\"60\"\/>No. Merchant service charges, where applicable, are commercial arrangements between merchants and payment service providers. They do not mean that consumers pay to use digital payments.<span class=\"id-r-component br\" data-pos=\"63\"\/>Across the world, merchant service charges are a standard feature of digital payment ecosystems, while consumers continue to enjoy convenient and secure digital payment experiences.<span class=\"id-r-component br\" data-pos=\"66\"\/><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">7. Why is sustaining the UPI ecosystem important?<\/span><span class=\"id-r-component br\" data-pos=\"68\"\/>UPI has become critical national digital infrastructure used by hundreds of millions of Indians every day.<span class=\"id-r-component br\" data-pos=\"70\"\/>As transaction volumes continue to grow, sustained investment in security, resilience, innovation, fraud prevention and infrastructure will remain essential to ensure that UPI continues to serve consumers and businesses reliably for years to come.<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/timesofindia.indiatimes.com\/business\/india-business\/will-you-have-to-pay-to-use-upi-7-faqs-on-possible-mdr-and-what-it-means-for-consumers-answered\/articleshow\/133035717.cms\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>UPI has always been free for consumers since its launch in 2016. (Image: Stock.adobe) Will you now have to pay charges for your UPI transactions? That\u2019s the big question that many are asking after the Lok Sabha cleared a Bill amending the Payment and Settlement Systems Act, 2007, enabling the government to authorise banks and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":9776,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-9775","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-31"],"magazineBlocksPostFeaturedMedia":{"thumbnail":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786114612_upi.jpg","medium":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786114612_upi.jpg","medium_large":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786114612_upi.jpg","large":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786114612_upi.jpg","1536x1536":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786114612_upi.jpg","2048x2048":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786114612_upi.jpg","blogsy-small":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786114612_upi.jpg","blogsy-small-tall":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786114612_upi.jpg","blogsy-small-square":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786114612_upi.jpg","blogsy-small-masonry":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786114612_upi.jpg","blogsy-medium":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786114612_upi.jpg","blogsy-medium-masonry":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786114612_upi.jpg","blogsy-large":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786114612_upi.jpg","blogsy-wide":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786114612_upi.jpg"},"magazineBlocksPostAuthor":{"name":"admin","avatar":"https:\/\/secure.gravatar.com\/avatar\/8709732a479614e7a8aa24d3eb1b239f30dc6d90c61464ed495001e7a469d856?s=96&d=mm&r=g"},"magazineBlocksPostCommentsNumber":"0","magazineBlocksPostExcerpt":"UPI has always been free for consumers since its launch in 2016. (Image: Stock.adobe) Will you now have to pay charges for your UPI transactions? That\u2019s the big question that many are asking after the Lok Sabha cleared a Bill amending the Payment and Settlement Systems Act, 2007, enabling the government to authorise banks and [&hellip;]","magazineBlocksPostCategories":["\u0b26\u0b47\u0b36 \u0b2c\u0b3f\u0b26\u0b47\u0b36"],"magazineBlocksPostViewCount":1,"magazineBlocksPostReadTime":4,"magazine_blocks_featured_image_url":{"full":["https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786114612_upi.jpg",400,225,false],"medium":["https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786114612_upi.jpg",300,169,false],"thumbnail":["https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/1786114612_upi.jpg",150,84,false]},"magazine_blocks_author":{"display_name":"admin","author_link":"https:\/\/koshalsambada.in\/author\/admin"},"magazine_blocks_comment":0,"magazine_blocks_author_image":"https:\/\/secure.gravatar.com\/avatar\/8709732a479614e7a8aa24d3eb1b239f30dc6d90c61464ed495001e7a469d856?s=96&d=mm&r=g","magazine_blocks_category":"<a href=\"#\" class=\"category-link category-link-31\">\u0b26\u0b47\u0b36 \u0b2c\u0b3f\u0b26\u0b47\u0b36<\/a>","_links":{"self":[{"href":"https:\/\/koshalsambada.in\/index.php?rest_route=\/wp\/v2\/posts\/9775","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/koshalsambada.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/koshalsambada.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/koshalsambada.in\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/koshalsambada.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9775"}],"version-history":[{"count":0,"href":"https:\/\/koshalsambada.in\/index.php?rest_route=\/wp\/v2\/posts\/9775\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/koshalsambada.in\/index.php?rest_route=\/wp\/v2\/media\/9776"}],"wp:attachment":[{"href":"https:\/\/koshalsambada.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9775"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/koshalsambada.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9775"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/koshalsambada.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9775"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}