PIB India (@PIB_India) on X

PIB India@PIB_India🔰UPI Payments to Remain Free for Person to Person transactions; MDR Applicable Only on -Value Merchant Transactions ▪️The Government has amended the Payment and Settlement Systems (PSS) Act, 2007 empowering the government to notify specific electronic payment modes where no charges shall apply. ▪️This amendment provides the legal foundation to ensure affordability and transparency in digital transactions ▪️On , the Central Government issued a notification under this framework, specifying that Unified Payments Interface (UPI) transactions up to ₹2,000 will attract zero Merchant Discount Rate (MDR) ▪️Further, detailed circular has also been issued 15th September, 2026, after deliberation of UPI steering committee on operational parameters, fee distribution models, and category caps 🔰The key highlights of the circular are as follows: ▪️For person-to-person (P2P) transactions, there will be no charges at all, irrespective of transaction value. P2P transactions constitute 37% of the total UPI transactions in volume terms and 70% in value terms ▪️Charges will apply only to person-to-merchant (P2M) transactions exceeding ₹2,000 🔰Technical Framework ▪️A nominal MDR of 0.4% will be levied on P2M transactions above ₹2,000. This commission will be shared amongst the payment ecosystem partners, including banks and app providers ▪️For high-value transactions of ₹75,000 and above, MDR will be capped at ₹300 per transaction Don't miss the full details—read here: pib.gov.in/PressReleasePa… @FinMinIndia1:37 PM · Sep 15, 202645.6KViews125201725111