Will UPI Payments Above ₹2,000 Be Charged? Govt's New Bill Explained

Could UPI payments above ₹2,000 attract charges in the future? The Finance Ministry has introduced amendments to the Payment and Settlement Systems Act, 2007, allowing the government to decide Merchant Discount Rate (MDR) rules through future notifications. The proposed law does not impose MDR immediately, and UPI transactions continue unchanged for now. However, it removes the blanket legal ban on MDR, giving the government flexibility to introduce merchant charges later, if required. Reports suggest any future MDR could target high-value UPI payments made to large merchants, while routine consumer payments and small businesses are expected to remain unaffected.