Small Traders Won’t Face UPI Merchant Discount Rate, PCI Confirms

The Payments Council of India (PCI) issued a clear clarification on Friday as discussions about a possible Merchant Discount Rate (MDR) on UPI payments intensified. PCI assured that the Unified Payments Interface will stay free for all consumers and that no fee will be charged to small‑scale merchants who accept UPI. Since its inception in 2016, UPI has allowed instant digital payments without any cost to the payer, and PCI said no new charges are under consideration for individuals. The council noted that the system was created to democratize digital payments and continues to be the foundational pillar of India’s payment landscape. While industry players deliberate on how to sustain the platform that processes billions of transactions each month, PCI stressed that the conversation does not involve imposing fees on consumers or tiny businesses.