Archive · 16 Sep 2026
Centre Rejects Foreign Influence Claim Over New UPI Charges
Starting October 15, some larger UPI payments made to shops will have a small fee.
The fee is called a merchant discount rate, or MDR.
It will apply when a person pays a shop more than Rs 2,000 using UPI.
The shopkeeper, not the customer, will pay this fee.
The fee cannot be more than Rs 300 for payments of Rs 75,000 or more.
Paying another person will still be free.
Most usual payments to shops will also remain free.
The Centre said the opposition’s claim about foreign influence was not correct.
A 0.4 per cent merchant discount rate will apply to person-to-merchant UPI payments above Rs 2,000 from October 15.
The charge will be paid by merchants rather than consumers.
The fee will be capped at Rs 300 for transactions of Rs 75,000 or more.
Payments between individuals and most everyday merchant payments will remain free.
The Centre rejected the opposition’s claim that foreign influence is involved.
- Who
- The Centre, the opposition, merchants, consumers, and UPI users.
- What
- A 0.4 per cent MDR will be introduced for certain person-to-merchant UPI payments, while the Centre rejects an opposition claim about foreign influence.
- When
- The charge will apply from October 15.
- Where
- The article does not specify a location.
- Why
- The article does not state why the charge is being introduced.
Opposition’s Claim
Centre’s Position
Foreign influence
Opposition’s Claim
The opposition claimed that foreign influence was connected to the UPI charges.
Centre’s Position
The Centre rejected the claim and said there was no foreign influence.
- Effective date
- October 15
- Charge
- 0.4 per cent MDR
- Applicable payments
- Person-to-merchant UPI payments above Rs 2,000
- Who pays
- Merchants, not consumers
- Maximum charge
- Rs 300 for transactions of Rs 75,000 or more
- Exempt payments
- Person-to-person payments and most everyday merchant payments remain free
- Government response
- The Centre rejected the opposition’s claim of foreign influence