Government Nears Decision on MDR for UPI Transactions Above ₹2,000
What Happened
The government is expected to clear the way for a Merchant Discount Rate (MDR) on UPI transactions above ₹2,000 within the next two weeks. Reports suggest the levy could be around 0.3%, with details on the scope and structure to be finalized by an NPCI-led committee after a government notification.
Key Takeaways
The proposed MDR would be charged to merchants, not consumers. Finance Minister Nirmala Sitharaman has said UPI payments will remain free for users, while the move aims to create a sustainable revenue model for banks and payment companies supporting the UPI ecosystem.