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There were media reports that claimed that it is considering reintroducing MDR (Merchant Discount Rate) on UPI transactions above Rs 3000. While smaller UPI payments will be exempted from it larger transactions could potentially attract merchant fees as claimed in the report. Some media reports had speculated that MDR might be reintroduced for transactions above Rs 3000. They also claimed that it was for the banks and payment providers to manage their growing costs. The proposed MDR was reportedly based on transaction value not merchant turnover and exempt smaller payments. The reports also claimed this change could replace the zero-MDR policy implemented in January 2020. Govt On UPI Payment Fees The government clarified that it has no plans to introduce new regulations for UPI transactions. According to the government such claims are baseless and unfounded. Ministry Of Finance Said ‘’Speculation and claims that the MDR will be charged on UPI transactions are completely false baseless and misleading. Such baseless and sensation-creating speculations cause needless uncertainty fear and suspicion among our citizens. The Government remains fully committed to promoting digital payments via UPI.’’ Before the government issued its denial some media outlets reported that banks and payment service providers had expressed concerns about the rising costs of managing large digital transactions. UPI currently accounts for about 80% of retail digital payments in India. The zero-MDR policy has reduced incentives for investment in the sector.  Since 2020 UPI person-to-merchant transactions have reached a value of Rs 60 lakh crore in these cases large transactions are borned by the service providers.