Q13 · UPSC current affairs · 16 September 2026 · PIB · UPI Fee Structure and Merchant Discount Rate Framework

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Consider the following statements regarding the UPI fee structure and Merchant Discount Rate (MDR):1.Person-to-Person (P2P) transactions on UPI carry zero charges under current regulatory guidelines.2.MDR is a direct government tax levied on all digital transactions to fund public digital infrastructure.Which of the statements given above is/are correct?

A 1 only
B 2 only
C Both 1 and 2
D Neither 1 nor 2

Correct answer: (a) 1 only

Explanation

Statement 1 is correct because P2P transactions on UPI are currently free under regulatory guidelines. Statement 2 is incorrect because MDR is not a government tax; rather, it is a service fee distributed between payment apps and banking intermediaries.

Same topic · past papers

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