Government may permit MDR on high-value UPI merchant payments
The government is reportedly considering a 25–30 basis-point merchant discount rate on high-value UPI transactions and payments to large commercial entities. If approved by Parliament and notified, the change could raise digital-payment acceptance costs for retailers after years of zero-MDR UPI policy.
The government may allow 25-30 basis points MDR on high-value UPI merchant payments and large commercial entities, ending zero-MDR restrictions. The proposal could materially raise payment acceptance costs for Indian retailers while creating revenue for the UPI ecosystem.
Why this matters
The report extends recent signals that a Finance Ministry bill and a proposed bill could reopen MDR on UPI, particularly for large merchants and select merchant payments.
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