Government paid banks 0.15% to keep small UPI payments free
Ministry of FinanceEndedApplies from 1 Apr 2024
By Clarifee teamAnnounced Last checked
The Cabinet approved a ₹1,500 crore scheme for 2024-25. Banks got 0.15% on small merchants’ UPI payments up to ₹2,000, and merchants kept zero MDR. The scheme ran to 31 Mar 2025.
What it means for you
No direct cost to merchants; the incentive went to banks and the scheme period has ended.
Official sources
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