# UPI Fee Won't Hit Consumers

> New Delhi says proposed 0.4% UPI merchant fee won't be passed to users.
- Title: UPI Fee Won't Hit Consumers · The Economic Times | Shortify
- Summary: 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…
- Keywords: upi, merchant fee, rs 2000, mdr, indian banks association, gst council, dilip asbe, Fee, Won't, Hit, Consumers, The Economic Times
- Source: The Economic Times — https://economictimes.indiatimes.com/industry/banking/finance/proposed-0-4-upi-merchant-fee-will-not-be-passed-to-consumers-report/articleshow/134466265.cms
- Author: PTI
- Published: 2026-09-24T15:58:00+00:00
- Read time: 1 min
- Topics: upi, merchant fee, rs 2000, mdr, indian banks association, gst council, dilip asbe
## 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
## Key takeaway

Government sources confirm proposed 0.4% UPI merchant fee above Rs 2,000 won't be passed to consumers.