Government proposes MDR on UPI payments from large merchants
Proposed changes would introduce merchant discount rates for large-merchant UPI transactions, potentially reshaping digital-payment costs. Separately, tax breaks for foreign machinery suppliers to electronics contract manufacturers, including Apple-linked vendors, could be extended through 2041.
The government has initiated amendments to levy merchant discount rates on UPI payments by large merchants and proposed extending tax breaks for foreign machinery suppliers to electronics contract manufacturers, including those serving Apple, until 2041.
Why this matters
The proposal follows signals that a Payment Bill could revive MDR on large-value UPI payments, India could end zero-MDR for UPI, and MDR could be enabled for UPI and RuPay debit payments at large merchants.
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