Brief by Shorts91 Newsdesk / 03:56pm on 24 Sep 2026,Thursday India
Fears of consumers shifting to cash because of merchant fees on UPI transactions above Rs 2,000 are “100% misplaced”, government sources said. Officials argued that Merchant Discount Rate (MDR) already applies to credit and debit cards, except RuPay debit cards, without discouraging use. They said merchants have absorbed card MDR and questioned why UPI should be treated differently. Officials also warned that providing UPI services free indefinitely could undermine the system’s sustainability, describing it as a “golden goose”. Only 4% of person-to-merchant UPI transactions exceed Rs 2,000 and would attract the fee. Fees collected from high-value UPI payments are unlikely to cover the full cost of operating payments infrastructure. (PC: X)
