UPI stays free for all P2P and 96% of merchant transactions: Finance Ministry
The Finance Ministry clarified that the new UPI framework keeps all person-to-person (P2P) transfers completely free, regardless of amount, and also exempts merchant payments up to Rs 2,000 and those under the zero-MDR framework for small merchants. As a result, about 96% of person-to-merchant transactions stay unaffected. The Merchant Discount Rate (MDR), it stressed, is neither a tax nor a charge levied by the government or NPCI.
Nabka Insight
UPI pricing, MDR and NPCI's role are high-frequency polity-economy topics across all exams.
Powered by AIKey facts
- All P2P UPI transfers remain free, irrespective of amount.
- Merchant payments up to Rs 2,000 stay free; MDR applies only above Rs 2,000.
- About 96% of person-to-merchant transactions are unaffected.
- MDR is not a tax or a government/NPCI charge.
Relevant forSSC · State PSC · UPSC