---
title: "UPI Charges: Finance Ministry Issues Notification on MDR for High-Value Merchant Transactions"
english_title: " UPI Charges: Finance Ministry Issues Notification on MDR for High-Value Transactions"
publisher: "english.truevisionnews.com"
canonical_url: "https://english.truevisionnews.com/news/382688/upi-charges-finance-ministry-mdr-high-value-transactions"
published_at: "2026-09-15T10:41:00+05:30"
category: "Big Story"
language: "ml"
image: "https://cf.zdn.im/img/truevisionnews.com/0/image-uploads/6aa8d40ac0507_upi-charges-finance-ministry-mdr-high-value-transactions.jpg"
keywords: ["UPI charges", "Finance Ministry", "MDR", "UPI transactions", "RuPay debit card", "digital payments"]
---

# UPI Charges: Finance Ministry Issues Notification on MDR for High-Value Merchant Transactions

> **Lead Summary:** **New Delhi: **The Finance Ministry has issued an official notification as an initial step towards introducing Merchant Discount Rate charges on high-value UPI transactions made by merchants. Under the new decision, full exemption from charges will continue only for UPI transactions below Rs 2,000 and transactions made through RuPay debit cards.

## Article Content

**New Delhi: **The Finance Ministry has issued an official notification as an initial step towards introducing Merchant Discount Rate charges on high-value UPI transactions made by merchants. Under the new decision, full exemption from charges will continue only for UPI transactions below Rs 2,000 and transactions made through RuPay debit cards.

There will be no charges for regular person-to-person (P2P) UPI payments. However, the new amendment will affect payments made by individuals to merchants and businesses, known as person-to-merchant (P2M) transactions.

The exact details of whether merchants will be charged MDR on all transactions above Rs 2,000, and what the applicable rates would be, will be clarified only through forthcoming notifications. The latest notification therefore represents an initial step, while the specific rates and other details are yet to be announced.

MDR is the service charge collected from merchants by banks or payment service providers when digital payments are processed. Since January 2020, all UPI transactions had been made completely free of MDR charges.

As a move preceding the possible reintroduction of MDR, the government had recently amended the Payment and Settlement Systems Act. The latest notification comes in this context.

If MDR charges are implemented, merchants may face an additional financial burden for accepting digital payments. There is also a possibility that merchants could pass this additional cost on to customers. If that happens, ordinary consumers may have to bear higher costs for their day-to-day digital payments in the future.

The new framework specifically keeps regular P2P UPI transactions outside the proposed change, while transactions between individuals and merchants or businesses could be affected. The exact nature and rates of any charges on transactions above Rs 2,000 remain to be clarified in the next notifications from the government.

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