PCI - Payments Council of India

The Payments Council of India was formed under the aegis of IAMAI in the year 2013 catering to the needs of the digital payment industry.

[PCI - Payments Council of India @PCIUpdates]

With due respect, we wish to put forward a factual clarification:
The ₹146 figure does not reflect the fuel-specific MDR provision. As per the NPCI FAQ, fuel/petroleum transactions above ₹2,000 attract a flat MDR of ₹5, irrespective of the transaction value, while transactions below ₹2,000 carry zero MDR.

Therefore, for a ₹30,924 fuel purchase, the applicable MDR would be ₹5, and ₹5.90 including 18% GST, if GST is applicable, and not ₹146.

We hope this clarification is helpful in keeping the discussion factually accurate and constructive.

Please refer to the Q33 under the FAQ: https://t.co/GTYUIJwpGJ

@FinMinIndia @NPCI_NPCI

[UPI @UPI_NPCI]

When it comes to UPI and MDR, knowing the right information makes all the difference.

Person-to-Person UPI payments continue to remain completely free, no matter the transaction amount. MDR is applicable only to specified merchant transactions above ₹2,000 and is not charged to the customer making the UPI payment.

Know the right information and continue using UPI with confidence like you always have!

For any UPI related help, visit: https://t.co/f63Pf4OxDC

#UPI #UPIChalega #KBConSonyTV #KBC2026 #SonyTV #KnowItAllWithUPI

[UPI @UPI_NPCI]

UPI continues to remain free for consumers. Person-to-person (P2P) payments remain completely free, while person-to-merchant (P2M) transactions up to ₹2,000 continue with zero MDR.

For specified merchant transactions above ₹2,000, MDR is applicable on the merchant side—not to UPI users. UPI MDR helps support the technology, infrastructure and operations needed to keep the UPI ecosystem running smoothly and sustainably.

#UPI #NPCI #UPIChalega #DigitalPayments

[NPCI @NPCI_NPCI]

UPI continues to remain free for consumers. Person-to-person (P2P) payments remain completely free, while person-to-merchant (P2M) transactions up to ₹2,000 continue with zero MDR.

For specified merchant transactions above ₹2,000, MDR is applicable on the merchant side—not to UPI users. UPI MDR helps support the technology, infrastructure and operations needed to keep the UPI ecosystem running smoothly and sustainably.

#UPI #NPCI #UPIChalega #DigitalPayments

[PCI - Payments Council of India @PCIUpdates]

With due respect, we wish to put forward a factual clarification:
The ₹146 figure does not reflect the fuel-specific MDR provision. As per the NPCI FAQ, fuel/petroleum transactions above ₹2,000 attract a flat MDR of ₹5, irrespective of the transaction value, while transactions below ₹2,000 carry zero MDR.

Therefore, for a ₹30,924 fuel purchase, the applicable MDR would be ₹5, and ₹5.90 including 18% GST, if GST is applicable, and not ₹146.

We hope this clarification is helpful in keeping the discussion factually accurate and constructive.

Please refer to the Q33 under the FAQ: https://t.co/GTYUIJwpGJ

@FinMinIndia @NPCI_NPCI

[Ministry of Information and Broadcasting @MIB_India]

Flat MDR for essential services, keeping digital payments efficient.

For specific sectors such as railways, telecom, insurance and fuel, a flat MDR of ₹5 applies to eligible UPI transactions above ₹2,000, instead of a variable percentage rate.

This flat-rate model helps prevent cost escalations in critical public services, utility bill collection and thin-margin sectors like fuel retail—keeping essential consumer services low-cost and digitally efficient.

#KnowTheFacts #UPIUpdates

[PCI - Payments Council of India @PCIUpdates]

India’s UPI ecosystem is taking an important step towards long-term sustainability.

More than 95% of UPI P2M payments are ₹2,000 or below — and these continue to have ZERO MDR.

For small merchants under the P2PM framework with UPI collections up to ₹1 lakh per month, ZERO MDR continues — even on payments above ₹2,000.

Customers continue to pay no UPI transaction charges.

#UPI #DigitalPayments #SmallMerchants #MDR

[ReserveBankOfIndia @RBI]

The introduction of MDR on large-value UPI transactions (i.e., above ₹2,000) is an important step towards strengthening the long-term sustainability of India’s digital payments ecosystem. It will help UPI in continuing to scale, innovate and serve consumers and businesses across the country.

A fair and appropriate distribution of MDR across ecosystem participants will support continued investment in technology, infrastructure and acceptance networks. This, in turn, can enable wider UPI acceptance, deepen the customer base and support sustained growth in transaction volumes.

Importantly, all UPI transactions - P2P and P2M - shall remain free for users. P2M UPI transactions below ₹2,000 will continue to remain free for merchants, while MDR may be levied on merchants for P2M .

RBI remains committed to ensuring that UPI continues to be safe, seamless, affordable, and accessible, while supporting the long-term sustainability and growth of India’s world-class digital payments ecosystem.

[Ministry of Finance @FinMinIndia]

👉 UPI Continues to Remain Free for Peer to Peer Transactions and 96% of Merchant Transactions

👉 The new UPI framework introduced has no impact on any person to person transactions

👉 UPI will continue to remain completely free for all person-to-person transactions, irrespective of the amount transferred

👉 Payments to merchants up to ₹2,000, along with transactions covered under the zero-MDR framework for small merchants, will also remain free

👉 Consequently, approximately 96% of all P2M transactions will remain unaffected. MDR will apply only to specified merchant transactions above ₹2,000

👉 It is clarified that MDR is neither a tax nor a charge collected by the Government or @NPCI_NPCI. It is distributed among payment ecosystem participants, including banks and payment application providers, to support the operation and continued expansion of the UPI ecosystem

👉 Introduced under the Payment and Settlement Systems Act, 2007, following detailed deliberations by the UPI Steering Committee, the framework seeks to ensure the long-term sustainability of UPI while protecting individuals and small merchants from additional charges

Read here for full details ➡️ https://t.co/KGxlX3SVC0

[TOI Plus @TOIPlus]

Zero-charge policy was useful when the goal was to spur initial UPI adoption. But now that UPI has matured, keeping it safe and efficient while ensuring growth requires major investments. Hence, the need for charges.

https://t.co/wFszvT3ZK8

[PCI - Payments Council of India @PCIUpdates]

There has been considerable discussion around UPI and merchant charges. Here are the facts behind the conversation what it means for consumers, merchants, and India's digital payment ecosystem.

1. Will I have to pay to use UPI?
No. UPI has always been free for consumers since its launch in 2016. Every Indian can continue making instant digital payments without paying any transaction charges.

2. Will small shopkeepers or kirana stores be charged for accepting UPI?
No. Small merchants are not required to pay any charges (MDR) to accept UPI payments. UPI was designed to make digital payments accessible for even the smallest businesses across India, and protecting small merchants remains central to the ecosystem's inclusive growth.

3. Why is there a discussion around UPI charges now?
UPI has evolved from a new payment platform into the world's largest real-time payment system. As the ecosystem continues to expand, discussions are taking place on how to sustainably support the infrastructure that enables billions of secure transactions every month, while continuing to ensure that consumers and small merchants remain protected.

4. Who built and continues to invest in UPI?
For nearly 10 years, banks, payment companies, fintechs, NPCI and RBI have collectively invested in technology, cybersecurity, fraud prevention, innovation and customer support to build one of the safest and most reliable payment systems in the world.
These investments continue every day to keep UPI secure, resilient and available 24×7.

5. If UPI is free, who bears the cost of operating it?
Operating a national payment infrastructure involves continuous investment in technology, fraud prevention, cybersecurity, compliance, customer support and innovation.
These costs are currently borne by ecosystem participants including banks and payment service providers who continue to invest so consumers can enjoy a safe, secure and seamless payment experience.

6. Would consumers have to pay if large merchants pay for payment acceptance?
No.
Merchant service charges, where applicable, are commercial arrangements between merchants and payment service providers. They do not mean that consumers pay to use digital payments.
Across the world, merchant service charges are a standard feature of digital payment ecosystems, while consumers continue to enjoy convenient and secure digital payment experiences.

7. Why is sustaining the UPI ecosystem important?
UPI has become critical national digital infrastructure used by hundreds of millions of Indians every day.
As transaction volumes continue to grow, sustained investment in security, resilience, innovation, fraud prevention and infrastructure will remain essential to ensure that UPI continues to serve consumers and businesses reliably for years to come.

@FinMinIndia @DFS_India @nsitharamanoffc

[PCI - Payments Council of India @PCIUpdates]

@onlymadhoo Definitely agree.

As UPI grows, so does the need to invest in the infrastructure that keeps it secure, reliable and future-ready. @FinMinIndia

[PCI - Payments Council of India @PCIUpdates]

@FinMinIndia

[PCI - Payments Council of India @PCIUpdates]

What is all the buzz about UPI?

There has been considerable discussion around UPI and merchant charges. Here are the facts behind the conversation what it means for consumers, merchants, and India's digital payment ecosystem.

#UPI #DigitalPayments

[PCI - Payments Council of India @PCIUpdates]

What is all the buzz about UPI?

There has been considerable discussion around UPI and merchant charges. Here are the facts behind the conversation what it means for consumers, merchants, and India's digital payment ecosystem.

#UPI #DigitalPayments

[PCI - Payments Council of India @PCIUpdates]

(8/8)
As transaction volumes continue to grow, sustained investment in security, resilience, innovation, fraud prevention and infrastructure will remain essential to ensure that UPI continues to serve consumers and businesses reliably for years to come.

#UPI #DigitalPayments

[PCI - Payments Council of India @PCIUpdates]

(7/8)

UPI has become critical national digital infrastructure used by hundreds of millions of Indians every day.