With increasing fears of the introduction of charges on UPI transactions, the government is now trying to ensure that the 0.4% Merchant Discount Rate (MDR) charge on UPI transactions above ₹2,000 does not fall on customers.

There will be a charge of 0.4% on all UPI transactions above ₹2,000 from October 15th. On Wednesday last week, it was clearly mentioned by merchants that they would pass the burden to their customers.

Senior government officials have said that talks are going on to come to an understanding between the merchants and the payment aggregators for stopping this. The government is in touch with both the merchants and payment aggregators in this regard.

From October 15th onwards, all UPI transactions will be checked every day and compared with the same time last year, to see the effect of this charge on UPI transactions.

Steps can also be taken to exclude businesses which do not come under the scope of GST from the 18% GST being charged on UPI charges.

This issue may be brought up in the GST Council meeting. Businesses registered under GST will receive the 18% GST levied on the fees as a refund.

Government sources also say that cash transactions are not expected to increase after the levy on UPI payments. Each country should have its own system. This step is in this direction.

Five percent of the MDR fee collection will be spent on strengthening the UPI network to ensure that UPI payments reach underserved populations.

Jagran sources stated that the United States had requested India to link its company's credit cards to the UPI payment service. However, the government did not do so.

Fees are levied on payments made using their credit and debit cards, while India's own RuPay card is free of charges. It has been exempted from MDR charges to promote its popularity among the public.

With increasing fears of the introduction of charges on UPI transactions, the government is now trying to ensure that the 0.4% Merchant Discount Rate (MDR) charge on UPI transactions above ₹2,000 does not fall on customers.

There will be a charge of 0.4% on all UPI transactions above ₹2,000 from October 15th. On Wednesday last week, it was clearly mentioned by merchants that they would pass the burden to their customers.

Senior government officials have said that talks are going on to come to an understanding between the merchants and the payment aggregators for stopping this. The government is in touch with both the merchants and payment aggregators in this regard.

From October 15th onwards, all UPI transactions will be checked every day and compared with the same time last year, to see the effect of this charge on UPI transactions.

Steps can also be taken to exclude businesses which do not come under the scope of GST from the 18% GST being charged on UPI charges.

This issue may be brought up in the GST Council meeting. Businesses registered under GST will receive the 18% GST levied on the fees as a refund.

Government sources also say that cash transactions are not expected to increase after the levy on UPI payments. Each country should have its own system. This step is in this direction.

Five percent of the MDR fee collection will be spent on strengthening the UPI network to ensure that UPI payments reach underserved populations.

Jagran sources stated that the United States had requested India to link its company's credit cards to the UPI payment service. However, the government did not do so.

Fees are levied on payments made using their credit and debit cards, while India's own RuPay card is free of charges. It has been exempted from MDR charges to promote its popularity among the public.