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UPI Transaction Charge: Some media reports claimed that a charge may be levied on UPI transactions above Rs 3,000. On this, the Finance Ministry has clarified that there will be no charge on UPI and such news is completely misleading and wrong.

UPI Transaction Charge: There is a big relief news for those who make payments through UPI. The government has clarified that no additional charge will be levied on any kind of Unified Payments Interface (UPI) transaction. On June 11, the Finance Ministry issued a statement on the social media platform X (formerly Twitter) and termed the news of imposing charges in the media as irresponsible and misleading.

Government's clarification on misleading reports

For the last few days, some media reports were claiming that the government is planning to charge a fee under Merchant Discount Rate (MDR) on transactions of more than Rs 3,000 made through UPI. According to the reports, this charge was to be taken from the shopkeepers and a reduction of up to 0.3% was possible in it. That is, if a customer makes a UPI payment of more than Rs 3,000, then the shopkeeper could have to pay an MDR fee of up to Rs 9 to the bank.

However, putting an end to these claims, the Finance Ministry has said that "such rumors are baseless and undermine people's confidence in the digital payment system. UPI is a free and efficient payment system and the government is fully committed to expanding it."

Digital India Mission is getting a boost

The government is constantly promoting the digital payment system. The number and value of transactions through UPI is constantly increasing. According to the data of National Payments Corporation of India (NPCI), in May 2025 itself, more than 1200 crore transactions were recorded through UPI, whose total value was more than Rs 18 lakh crore.

What is MDR?

Merchant Discount Rate (MDR) is the fee that a shopkeeper or merchant pays to the bank in exchange for taking digital payments. Earlier this fee was levied on debit and credit card transactions, but it is not levied on UPI. The government abolished MDR in 2020 to encourage digital payments.

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