Centre weighs 0.5% MDR on UPI payments above Rs 2,000 for large merchants
The government may reintroduce a 0.5% merchant discount rate on UPI transactions of Rs 2,000+, sparing businesses under Rs 1.5 crore turnover. Only about 4% of P2M transactions exceed Rs 2,000, but larger retailers face fresh payment costs and potential pass-through pricing pressure.
The Centre may reintroduce a 0.5% MDR on UPI transactions of Rs 2,000+ for large merchants, exempting businesses under Rs 1.5 crore turnover. This directly affects payment costs and pass-through pricing for larger Indian retailers.