UPI Utility Bill Payments Above ₹2,000 Face Flat ₹5 MDR

When people pay some utility bills using UPI, the payment provider may charge the utility company a fee.

For electricity, water and piped gas bills up to ₹2,000, that fee is zero.

For bills above ₹2,000, the fee is a fixed ₹5.

The fee is paid by the merchant or utility provider, not described as a separate consumer charge in the article.

This means the utility company does not face a larger percentage-based fee on expensive bills.

The arrangement can make digital bill collection more predictable.

It applies to public bodies such as electricity companies and municipal water authorities.

The article says the framework is meant to encourage digital payments for essential services.