Consumers making UPI payments will not face any transaction charges, said the Union government on Saturday. “All person-to-person transactions will continue to be free of charge,” stated the Union Ministry of Finance. Merchant Discount Rate is a fee charged to businesses by banks to cover the costs of processing transactions. In July, users made 2,366 crore UPI transactions worth Rs 29.9 lakh crore. On Wednesday, the finance ministry stated that only a limited set of merchant transactions will attract the Merchant Discount Rate.