No MDR for UPI Transactions: Finance Ministry Quells Rumors

The finance ministry has definitively stated there will be no Merchant Discount Rate (MDR) imposed on Unified Payments Interface (UPI) transactions, emphasizing that rumors to the contrary are unfounded. On Wednesday, the ministry took to X to dismiss these claims as false, unsubstantiated, and misleading.

Officials noted that such fabricated speculations only serve to create unnecessary uncertainty and fear among the public. They reaffirmed the Government's commitment to encouraging digital payments through UPI.

Speculation about MDR charges arose after reports hinted at potential fees on large-ticket UPI transactions. Despite this, UPI transactions reached a peak of Rs 25.14 lakh crore in May, showcasing a 5% increase from April, according to National Payments Corporation of India data.

(With inputs from agencies.)