Watch: Finance Ministry Introduces Bill To Amend Payment Act | Could UPI Transactions Be Charged?
The Finance Ministry has introduced a bill in Parliament to amend the Payment and Settlement Systems Act of 2007, allowing the government to levy a
The Finance Ministry has introduced a bill in Parliament to amend the Payment and Settlement Systems Act of 2007, allowing the government to levy a Merchant Discount Rate (MDR) on electronic payment modes, including UPI. The proposed changes remove the automatic zero MDR rule, enabling the government to specify fees via official notifications rather than statutory amendments.
Charges will not apply immediately, but future proposals under review suggest a 0.3% to 0.5% MDR on UPI payments above 2,000 rupees to merchants earning over 1.5 crore rupees annually. Small businesses and everyday consumer transactions will remain unaffected, while the change aims to support infrastructure costs for banks.
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