By News Desk 
Amid growing speculation about the reintroduction of fees on Unified Payments Interface (UPI) transactions, the Ministry of Finance has officially dismissed all such claims, reaffirming that there are no plans to impose any Merchant Discount Rate (MDR) on UPI payments.
Recent media reports had suggested that the government might levy an MDR fee on UPI transactions exceeding ₹3,000, while keeping smaller transactions free. These claims stirred concern among consumers and merchants alike. However, the ministry has categorically denied the existence of any such proposal.
Official Clarification from the Finance Ministry
Taking to social media, the Finance Ministry stated:
“The government has no intention of introducing MDR charges on UPI transactions. The ongoing rumors are baseless, misleading, and entirely false. Such misinformation creates unnecessary panic and confusion among citizens.”
The ministry reiterated its commitment to promoting digital payments and maintaining zero charges on UPI transactions—a policy that has been in place since January 2020.
Speculation and claims that the MDR will be charged on UPI transactions are completely false, baseless, and misleading.
— Ministry of Finance (@FinMinIndia) June 11, 2025
Such baseless and sensation-creating speculations cause needless uncertainty, fear and suspicion among our citizens.
The Government remains fully committed…
What Triggered the Speculation?
The speculation appears to have stemmed from a suggestion by the Payments Council of India (PCI), which proposed a 0.3% MDR fee for large merchants with high transaction volumes. This prompted media outlets to speculate that the government might consider this recommendation and introduce charges for high-value UPI payments.
Currently, credit and debit card transactions carry an MDR ranging from 0.9% to 2%, whereas RuPay credit cards remain free of such charges.
Media Reports Claimed Fee Was Necessary to Cover Losses
Several media reports argued that while free UPI has helped India become the global leader in digital payments, banks and payment service providers are incurring losses in the absence of transaction fees. It was suggested that introducing a fee on large-value transactions could help offset these losses.
Some reports even claimed that the government would consult with banks and financial institutions and possibly implement the charges within 12 months. However, the Finance Ministry has firmly denied these claims, calling them unfounded rumors.
Retail Sector Dominates UPI Usage
Currently, retail payments account for nearly 80% of all UPI transactions in India. The adoption of UPI among merchants has grown rapidly, and the total value of merchant UPI transactions has reached ₹60 lakh crore since 2020.
India’s Commitment to Digital Progress
The government’s firm stance sends a clear message: digital transactions via UPI will remain free to encourage adoption, drive inclusion, and maintain India’s leadership in the global digital payments space.