UPI Charges News: The government has refused to impose Merchant Discount Rate (MDR) on UPI transactions. Following this news, shares of Paytm’s parent One97 Communications fell 10 percent during trading on Thursday.
Shares of One97 Communications, the parent company of fintech firm Paytm, fell 10 per cent to Rs 864.20 on the Bombay Stock Exchange in early trade on Thursday (June 12). At the end of trading, the company’s shares closed at 895.15 with a 6.77 per cent decline on the BSE. The reason for the fall in Paytm’s stock is believed to be the government’s refusal to re-implement the Merchant Discount Rate (MDR) on UPI payments.
Recently, there were reports on social media that the government may have to charge for transactions of large amounts through UPI in the coming time. It was being said that the government is planning to impose MDR on transactions of large amounts, which may make payments through UPI expensive. Now the government has refused to impose MDR on UPI transactions.
Speculation and claims that the MDR will be charged on UPI transactions are completely false, baseless, and misleading.
Such baseless and sensation-creating speculations cause needless uncertainty, fear and suspicion among our citizens.
The Government remains fully committed…
— Ministry of Finance (@FinMinIndia) June 11, 2025
What is MDR?
MDR is the fee that banks charge merchants when they accept digital payments from customers. Earlier, merchants had to pay up to 1% MDR for payments made through debit cards, but in 2020, the government abolished MDR on debit cards to promote digital payments. However, MDR is still charged on credit card transactions, which usually ranges between 1% to 3%. This charge depends on the size of the transaction, card type and merchant category. Currently, to promote digital payments, the government has removed MDR from UPI transactions.
