No MDR on UPI Transactions: Finance Ministry Dismisses Media Reports as Baseless and Misleading

The Ministry of Finance has officially dismissed media reports suggesting that the government is planning to introduce a Merchant Discount Rate (MDR) on Unified Payments Interface (UPI) transactions. The ministry labeled these reports as "baseless and misleading" and reiterated the government's stance that UPI will remain a free-to-use public utility. The clarification came after speculation about a possible MDR on UPI transactions caused significant volatility in the stock prices of payment service providers. The government emphasized that it is committed to promoting digital payments and any potential costs associated with the UPI infrastructure will be covered through other means, not by levying charges on users or merchants. This firm denial provides clarity and assures the public and the industry that UPI will continue to be a zero-cost platform, a key factor that has driven its widespread adoption across India.