From The Economic Times · PTI · · 1m
UPI Fee Won't Hit Consumers
New Delhi says proposed 0.4% UPI merchant fee won't be passed to users.
In brief
New Delhi says proposed 0.4% UPI merchant fee won't be passed to users. Government sources confirm proposed 0.4% UPI merchant fee above Rs 2,000 won't be passed to consumers. Originally reported by The Economic Times.
Government Clarifies UPI Fee
New Delhi confirmed proposed 0.4 per cent UPI merchant fee on transactions above Rs 2,000 will not be passed to consumers.
“Government sources clarified that the proposed merchant fee on UPI transactions above Rs 2,000 will not affect consumers”
MDR Risk for 10% of Users
NPCI CEO Dilip Asbe warned about 10 per cent of UPI transactions might face charges passed to consumers under MDR.
“about 10 per cent of the overall value of UPI transactions could face the risk of charges being passed on to consumers under the merchant discount rate”
No Government Funds From Fee
The proposed MDR levy will not go to government coffers but will be shared among banks and UPI ecosystem entities.
“The sources said not a single penny from the proposed MDR will go to the government coffers”
IBA Campaign to Clarify
Indian Banks' Association will run awareness campaign to dispel misconceptions about 0.4 per cent UPI MDR levy.
“IBA will soon run an awareness campaign to dispel various misconceptions and rumours about levy of 0.4 per cent MDR on UPI transactions above Rs 2,000”
GST Council Review Expected
Government hopes GST Council will review 18 per cent GST on UPI transactions above Rs 2,000 merchant fee.
“They are also hopeful that the GST Council will review the 18 per cent GST on merchant fee on UPI transaction of over Rs 2,000”
What it means
Government sources confirm proposed 0.4% UPI merchant fee above Rs 2,000 won't be passed to consumers.