Government proposal could reopen UPI MDR debate for larger merchants
The Centre is set to amend digital-payment rules to selectively exempt electronic payment modes from merchant discount rate (MDR) requirements. If notified, the move could enable UPI charges for larger businesses, raising acceptance costs while improving payment-sector economics.
The government proposes amending payment rules to let it selectively exempt electronic modes from MDR, potentially enabling UPI merchant charges. The change could raise payment-acceptance costs for larger Indian retailers while supporting banks, fintechs and payment-infrastructure investment.
Why this matters
The proposal follows India’s push to deepen electronics manufacturing through tax-break extensions, while lower commercial LPG prices ease HoReCa costs. It could shift payment costs for larger retailers even as operating-cost pressures moderate.
Retail-company signals are accelerating, up 197771% QoQ.
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