The Economic Times

Finance Ministry rejects foreign influence claims over UPI MDR, says India's digital payments decisions are made independently

India's finance ministry rejected claims of foreign pressure influencing UPI transaction charges. A 0.4% Merchant Discount Rate will apply to UPI payments over Rs 2,000. This charge will not affect consumers and most small merchants remain exempt. The revenue will support payment ecosystem participants and infrastructure development. UPI policy decisions are made independently for an affordable digital payments ecosystem.