UPI Charges News: Will there be a charge on UPI transactions of Rs 3,000 or more? Now the government has responded to this. Recently, there are reports on social media that the government may have to pay a charge on transactions of large amounts through UPI in the coming time.
UPI Charges News: Will there be a charge on UPI transactions of Rs 3,000 or more? Now the government has responded to this. Recently, there are reports on social media that the government may have to pay a charge on transactions of large amounts through UPI in the coming time. It was being said that the government is planning to impose MDR (Merchant Discount Rate) on transactions of large amounts, which may make payment through UPI expensive. Now the answer has come from the government.
The Finance Ministry said this
Now the Finance Ministry has given complete clarification on this. The ministry has said that such news is false, baseless and misleading. The government clearly says that it wants to promote digital payments through UPI and there is no plan to impose any kind of charge on UPI. The ministry has appealed to the people not to pay attention to such rumors. The government has made it clear that it is committed to keeping UPI free and convenient. Therefore, do not trust these rumors circulating on social media.
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…
— Ministry of Finance (@FinMinIndia) June 11, 2025
What is MDR?
MDR is the fee that banks charge merchants when they accept digital payments from customers. Earlier, merchants had to pay up to 1% MDR for payments made through debit cards, but in the year 2020, the government abolished MDR on debit cards to promote digital payments. However, MDR is still levied on transactions with credit cards, which usually ranges between 1% to 3%. This charge depends on the size of the transaction, card type and merchant category.
Record-breaking UPI transactions in May
UPI has become India’s most used digital payment platform. It is managed by the National Payment Corporation of India (NPCI).
In May 2025, a record 18.68 billion transactions were done through UPI, with a total value of Rs 25.14 lakh crore. In April, this figure was Rs 23.95 lakh crore. UPI transactions have registered a growth of 33% as compared to May last year.
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