No MDR on UPI Transactions: Finance Ministry clarifies after Misleading Reports Spread Like Wildfire

New Delhi: The Union Finance Ministry has issued a statement reassuring citizens that no merchant discount rate (MDR) will be imposed on transactions through Unified Payments Interface (UPI) platforms. In response to baseless speculation circulating on social media, the ministry clarified its stance in order to remove unnecessary uncertainty and fear among people.

The reports claiming MDR would be levied on larger UPI transactions were found to be completely false, misleading, and baseless by the Ministry of Finance. "Such speculations cause undue worry for our citizens," said a representative from the finance ministry.

They clarified that the Merchant Discount Rate is applied as a percentage of payment amount in UPI-based digital transactions. The clarification came following some sensational reports from several media outlets.

Notably, the National Payments Corporation of India (NPCI) disclosed an impressive figure, stating their transaction value was up by 23 percent compared to the Rs 20.44 lakh crore observed at the same period last year.