UPI payments up to Rs 2,000 to remain free; higher values to come under MDR: Know details

On September 14, the Centre announced that banks will not be able to impose any charges on UPI transaction provided they are less than or equal to Rs 2,000. This will also be applicable to payments made RuPay-powered debit cards. Therefore, the way is clear for fees -- call it MDR or by any other name -- to be levied on higher amounts transacted through UPI.

Kolkata: The Centre has stated that banks cannot levy any charges on Unified Payments Interface (UPI) transactions or RuPay debit card payments of up to Rs 2,000. In a notification, the Finance ministry has sad that banks or system providers cannot impose any charge, directly or indirectly, on anyone making or receiving payments through the specified electronic payment methods. It has been done according to Section 10A of the ‘Payment and Settlement Systems Act’.

Paves the way for MDR

But the notification did not specify charges for transactions exceeding this amount. This indirectly paves the way for the application of MDR or Merchant Discount Rate on UPI transactions of higher value. The electronic........

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