Modi government's aim is to build Digital India. And that's why the emphasis is on cashless economy. UPI transactions are the result of that effort. With the passage of time, the trend of using UPI has increased tremendously among our population. Now the transaction rules have changed. Know where, who to pay additional charges?
From October 15, additional charges will have to be paid for business transactions of more than 2,000 rupees. MDR will sit. Now, what is this MDR thing? Simply put, when a merchant receives money online, he pays a certain amount of fees to the bank. This MDR or Merchant Discount Rate issue was no longer applicable in the Indian market after 2020. Since then the volume of online transactions in India has been increasing. This time the Modi government has passed a law aimed at bringing back the MDR. However, Union Finance Minister Nirmala Sitharaman has said that small traders will not be covered under this additional fee. So who will come under?
Under the new rules, 0.4 percent MDR will be applicable on business transactions above Rs 2,000. However, in case of transactions exceeding Tk 75 thousand or more, this fee will be limited to a maximum of Tk 300 per transaction. Besides, some privileged areas will be charged Rs.5. such as petrol pumps. Here this charge has to be paid for UPI transactions above 2000 rupees. Similarly, the same rate will be charged for supplies like electricity, piped gas. But in no case the customer or consumer has to pay anything.
However, in this case, the opposition complains that if the tax is imposed on the traders, it may be collected from the pockets of the people in the end. However, the Center has clarified that nothing will be deducted from the consumers. Moreover, no charges will be levied for non-business transactions. The question of charge arises only in business transactions exceeding 2 thousand rupees. But that too is zero in terms of customers.