India, Sept. 15 -- The government's decision to retain zero charges on UPI transactions up to Rs 2,000 has kept nearly 96 per cent of merchant transactions outside any potential merchant discount rate (MDR) regime, while simultaneously opening the legal door to charges on higher-value payments.

Government data shows that only around 4 per cent of person-to-merchant (P2M) UPI transactions in 2025-26 were above Rs 2,000. Person-to-person transactions are not part of the proposed charging framework. The significance of the change, however, becomes clearer when measured by value. The roughly 4 per cent of P2M transactions above Rs 2,000 account for around two-thirds of the total value of merchant UPI payments.

The September 14 notification ...