Confusion over UPI charges? Here's what the finance ministry has to say
The Finance Ministry has stated that speculation and claims regarding the Merchant Discount Rate (MDR) being charged on UPI transactions are completely incorrect, unfounded, and misleading. The Ministry stated that such unfounded speculation, which creates a sensation, causes unnecessary uncertainty, fear and suspicion among our people, and the government is fully committed to continuing to support digital payments via UPI. The rebuttal came after multiple reports circulated on social media claiming that the government would impose an MDR on larger UPI transactions.advertisementThe MDR refers to the fee that banks charge merchants to process real-time payments. Until recently, merchants would pay an MDR, for card payments, of 1% of the total value of the transaction. In 2020, the government implemented the waiver of MDR, seemingly forever, to encourage digital payments throughout the country.
Confusion over UPI charges? Here's what the finance ministry has to say
In May, the Unified Payments Interface (UPI) processed 18.68 billion transactions, totaling a value of 25.14 lakh crore rupees. This marks an increase from April, which recorded 23.95 lakh crore rupees in UPI transactions. Additionally, the May figures reflect a year-on-year growth of 33 percent, compared to 14.03 billion transactions in the same month last year.
During May, the average daily transaction amount for UPI was 81,106 crore rupees, with an average daily transaction volume of 602 million transactions. UPI's success has firmly positioned India at the forefront of global real-time payments, capturing a 48.5 percent share by volume.Must Watch
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