For millions of Indians, paying through UPI has become almost second nature. Scan a QR code, enter the UPI PIN and the payment is done in seconds. That everyday convenience has, however, been followed by a wave of confusion over a seemingly simple question: Will UPI payments now attract a charge, particularly when the transaction amount is above Rs 2,000?
The confusion gained momentum after the government introduced changes to the legal framework governing digital payments and discussions around Merchant Discount Rate, or MDR, resurfaced. The latest clarification from the government makes one thing clear: ordinary UPI users do not have to start paying a transaction fee simply because they make a payment above Rs 2,000.
