Centre May Replace Zero-MDR Rule With Notification-Based Digital Payments Regime
The government is reportedly preparing legal changes that would remove blanket statutory zero-MDR protection for UPI and RuPay debit transactions. Only payment modes notified by the government may remain exempt, potentially lifting digital-payment acceptance costs for merchants after legislation and notification.
Centre may amend payment and tax laws to replace statutory zero-MDR protection with a notification-based regime. Only government-notified payment modes would remain MDR-exempt, potentially raising acceptance costs for merchants using other digital payment methods.
Why this matters
The reported payments-policy shift follows Government of India proposals to extend tax relief for electronics suppliers and contract manufacturers, signaling continued intervention in business cost structures across retail-linked sectors.
Retail-company signals are accelerating, up 198614% QoQ.