Indian Government to charge 0% fee on UPI transactions over $21
by@Reuters
Summary
India has announced that, after six years of free use, it will start charging merchants a fee of 0.4% on Unified Payments Interface (UPI) transactions exceeding $21, a move known as the Merchant Discount Rate. This policy change aims to support the long-term viability of India's digital payments system, though person-to-person transfers will remain free from charges.
Analysis
Indian Government: The Indian Government serves as the central executive authority responsible for national economic policies, regulatory frameworks, and the development of digital public infrastructure. It has driven the growth of cashless payments through initiatives like the Unified Payments Interface (UPI). In this case, the government is implementing the Merchant Discount Rate to transition UPI toward a self-sustaining model after years of zero-cost merchant transactions. Policy Change: India is introducing a Merchant Discount Rate for qualifying UPI merchant transactions to support the long-term viability of its digital payments system. Transaction Types: Person-to-person UPI transfers remain exempt from fees as part of the updated policy.
Categories
macropolitics