Centre weighs MDR of up to 0.35% on high-value UPI payments
The proposed charge would apply to UPI transactions above Rs 2,000 at large merchants, while businesses with turnover up to Rs 1.5 crore may be exempt. Consumer UPI payments would remain free, but larger retailers could face added acceptance costs.
The Centre is considering MDR charges on high-value UPI and RuPay debit-card payments, while exempting smaller merchants. The proposal could raise payment-acceptance costs for large Indian retailers but fund banks and payment providers’ infrastructure, with consumer UPI usage remaining free.
Why this matters
The proposal follows recent signals that India may allow MDR on UPI and other electronic payments outside a negative list, while PSS Act changes could enable charges on select UPI merchant payments.
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