Srinagar, Oct. 1 -- UPI has become a normal part of everyday life in India. People use it to buy vegetables, pay at restaurants, book tickets, shop online, or send money to friends. Many payments that once required cash or cards can now be completed through a phone.

So, when news came that some UPI payments above Rs.2,000 would attract a 0.4% Merchant Discount Rate, many people wondered whether UPI was becoming a paid service.

The answer is no, at least for consumers.

The new framework mainly concerns certain merchant payments. Consumers are not supposed to pay the 0.4% MDR directly. Person-to-person UPI payments remain free, while merchant payments up to Rs.2,000 remain outside the MDR framework.

This makes the Rs.2,000 figure import...