The Union finance ministry dismissed reports of government planning to levy merchant discount rate (MDR) on large-ticket UPI transactions. In a statement, the ministry called the reports ‘false and baseless’.

"Speculation and claims that the MDR will be charged on UPI transactions are completely false, baseless, and misleading. Such baseless and sensation-creating speculations cause needless uncertainty, fear and suspicion among our citizens," the ministry said in a post on X.

"The government remains fully committed to promoting digital payments via UPI," it added.

The rebuttal comes after few media outlets claimed that the government is planning to introduce MDR on transactions worth Rs 3,000 and above to support banks and payment solution providers.

The reports had further claimed that the government may permit lenders to levy MDR on the transaction value rather than merchant turnover.