The federal government on Saturday clarified that UPI transactions will proceed to stay loose for customers, amid considerations that fresh adjustments to the Cost and Agreement Techniques Act, 2007 may pave the way in which for transaction fees.
The rationalization got here after the Cost and Agreement Techniques Act, 2007 used to be handed within the Lok Sabha previous this week. Studies had raised considerations that banks and fee firms may in the end levy fees on UPI transactions.
The Centre mentioned the majority of UPI transactions would stay loose for each consumers and traders. It in particular said that customers making bills would now not face any transaction fees and that each one person-to-person (P2P) transactions would proceed to be loose.
On the other hand, the federal government mentioned nominal Service provider Bargain Charge (MDR) fees may well be offered for a restricted class of service provider transactions above a specified threshold.
MDR is the cost charged to traders for accepting virtual or card bills. It has remained 0 for UPI transactions thus far, which means traders typically don’t pay a price for accepting UPI bills.
The federal government mentioned any long run MDR would now not be imposed universally and can be significantly not up to fees acceptable to debit and bank card transactions.
The Centre added that after Parliament passes the Taxation and Different Rules (Modification) Invoice, 2026, the UPI and Products and services Guidance Committee, headed through the Nationwide Bills Company of India (NPCI), will come to a decision whether or not MDR will have to be offered.
The federal government additionally rejected experiences suggesting that exterior power influenced the modification, calling such claims “utterly false and deceptive”.
It mentioned the transfer used to be geared toward making sure that India’s virtual bills ecosystem stays sustainable, aggressive and in a position to supporting the rustic’s increasing virtual financial system.
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