Brief by Shorts91 Newsdesk / 03:25pm on 04 Aug 2026,Tuesday India
India's free UPI payment system could see a major policy shift after the government proposed amendments to the Payment and Settlement Systems Act that would allow Merchant Discount Rate (MDR) charges on select UPI transactions in the future. If approved, the changes would primarily target high-value payments above ₹2,000 made to large merchants, while person-to-person transfers and most consumer payments are expected to remain free. No MDR has been introduced yet, but the proposal creates the legal framework for future charges. The payments industry has long sought such a move, arguing it would help fund infrastructure, innovation and the continued expansion of India's digital payments ecosystem. (PC: Image created using AI for representational purposes)
