New Delhi . The Ministry of Finance (Ministry of Finance) on Wednesday dismissed the speculation, stating that a large transaction from UPI could be charged. The ministry clarified on the social media forum ‘X “that no such proposal is being considered by the government. The speculation and claims of imposing MDR fees on UPI transactions are completely baseless and misleading. The government is fully committed to promoting digital payments through UPI.

Significantly, the news in the media had gained momentum that the government can impose a fee on UPI payment of more than Rs 3,000 or 5000. For this, merchant discount rate (MDR) can be re -implemented. Actually, this claim was made on the basis of the recommendation of Payments Council of India. It was reported that the council has proposed to start an MDR of 0.3% on UPI only for big traders.

Currently, MDR is placed between 0.9% to 2% on credit and debit cards other than RuPay. The MDR is the fee that collects the bank or payment service provider from the businessman when a customer pays the merchant. This fee is charged as a service operating cost.

SEBI compulsory new UPI payment system

Market regulator SEBI said on Wednesday that it has made a new UPI payment system compulsory for all registered intermediaries collecting funds from investors to improve the security of financial transactions within the securities market.

In recent years, many non-orderly institutions have misled investors through fraud. Keeping these in mind, SEBI has taken this step. SEBI chief Tuhin Kant Pandey told reporters here that this Integrated Payment System (UPI) payment system will be active from October 1, 2025.

The registered intermediaries include share broker, merchant banker, depository, investment advisor and portfolio manager. These intermediaries act as a link between investors and various units in financial markets.

In order to avoid the problem of fake identity using and increase the confidence of investors, the market regulator has made a new UPI address structure compulsory for all registered middlemen collecting funds from investors.

A new system called ‘SEBI Czech’ is being prepared

To empower investors, the market regulator is developing a new potential called ‘SEBI Czech’. This new instrument will enable the QR code scan or by entering UPI ID and confirming bank details of registered intermediary account number and IFSC code to verify the authenticity of UPI identity. SEBI issued a counseling paper in this regard in January. This arrangement has been made keeping in mind the suggestions on it.