Finance Ministry denies foreign pressure on UPI transaction charges

India's finance ministry has rejected allegations that foreign entities are pressuring the country's digital payments policy. The ministry asserted that all UPI policy decisions are made independently to maintain an affordable digital payments ecosystem.

Under the new framework, a 0.4% Merchant Discount Rate will apply to UPI payments exceeding Rs 2,000. The charge will not impact consumers, and most small merchants remain exempt from the levy.

The ministry stated that the revenue generated from the MDR will support payment ecosystem participants and fund infrastructure development.