Indian Govt Going Back On UPI Fee? Fact Check Inside!

UPI Fee Decision Sparks Debate

The government of India has taken one of the most consequential decisions in recent times in the form of the position of standard fee on UPI transactions above ₹2000.

According to the pricing slab that has been fixed by the government of India, the MDR on UPI transactions has been capped at Rs 300.

UPI merchant payments above Rs 2,000 will attract a nominal 0.4% MDR, shared across the payment ecosystem. For UPI payments of Rs 75,000 and above, MDR will be capped at Rs 300 per transaction.

This is not going to affect the common public as such considering that this fee is only applicable to merchants and big companies operating on UPI.

However, the problem has been with the fact that the public is concerned that these merchants and Shop owners might start to impose additional fee in the name of MDR that’s collected from them.

There has been significant backlash on this development on social media since yesterday. There have even been reports that the central government is contemplating the idea of going back on this UPI fee after facing the public outcry.

However, this was quickly rejected by the government sources as they confirmed that the UPI fee is going to stand firm. It was made clear that there is no intention of going back on the fee that is being imposed.

The real challenge for the government is going to be to control these merchants on UPI transactions. If these merchants impose the fee on common public, then there could be significant backlash or else the government might simply get away with it this time.