00:00Could UPI payments soon come with a fee?
00:02The Indian government introduced a new bill that allows banks and other payment companies to charge a fee on transactions.
00:09Here's what you have to know about it.
00:11UPI is one of the world's biggest digital payment systems with over 550 million users.
00:17Using UPI has been free since 2020.
00:20You just scan a QR code and make payments instantly.
00:23But maintaining it is also expensive.
00:25Keeping servers running, settling transactions, detecting fraud, and defending against cyberattacks.
00:31So far, the government has covered much of UPI's operating costs, but it says it's becoming too expensive.
00:37That's why it is now considering reintroducing MDR,
00:41reportedly with fees applying only to high-value merchant transactions at a yet-to-be-announced threshold.
00:47The government says that customers, small businesses, and person-to-person transfers would remain exempt.
00:53Supporters argue that MDR could help maintain the UPI infrastructure,
00:57while critics fear that the fee will make products more expensive.
01:01What do you think about the plan?
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