Question 1

Is UPI free for consumers and buyers?

Accepted Answer

Yes. Sending money to friends (P2P) and paying at shops (P2M) remain completely free for consumers. Banks and merchant apps cannot add a checkout surcharge or deduction to your account.

Question 2

Are merchant transactions below ₹2,000 free of MDR?

Accepted Answer

Yes. Under the Ministry of Finance policy, all merchant payments up to ₹2,000 carry zero MDR. Government transaction data shows this covers approximately 96% of all merchant purchases across India.

Question 3

What is the MDR for transactions above ₹2,000, and is there a cap?

Accepted Answer

The standard MDR for commercial transactions above ₹2,000 is 0.40%. For payments of ₹75,000 and above, the law caps the MDR at ₹300 per transaction.

Question 4

How are electricity, water, and school fees charged?

Accepted Answer

Public utilities (electricity, water, municipal tax portals) and accredited schools and colleges have a flat ₹5 MDR per transaction above ₹2,000 instead of a percentage rate.

Question 5

Can I use the bill splitter to avoid transaction limits or merchant fees?

Accepted Answer

No. UPIfree provides bill splitting strictly for genuine shared expenses, such as group dinners, shared road trips, or house rent. Never use bill splitting to artificially divide a single commercial purchase to bypass acquiring rules.

Question 6

Does UPIfree ever ask for my UPI PIN, OTP, or bank passwords?

Accepted Answer

Never. UPIfree is an informational utility. We never ask for or store UPI PINs, passwords, OTPs, or debit card details. QR code inspections run directly in your browser without uploading your photos to our servers.

Question 7

Is UPIfree an official government portal or bank?

Accepted Answer

No. UPIfree.com is an independent payment-intelligence website. Our calculators cite public circulars from the Ministry of Finance, the Reserve Bank of India, and the National Payments Corporation of India (NPCI).

Frequently Asked Questions