India may allow MDR on UPI and other electronic payments outside a negative list
A proposed legal change could let the government apply merchant discount rates to electronic payment modes not placed on a notified negative list. UPI may be affected, raising acceptance-cost questions for merchants as policymakers consider thresholds or turnover-linked fees.
India may introduce merchant discount rates for electronic payment modes outside a government-notified negative list, potentially including UPI. The change could reshape payment acceptance costs for merchants, while UPI monetisation options under consideration include transaction thresholds or turnover-linked fees.
Why this matters
UPI’s MDR risk is escalating: earlier signals flagged a PSS Act change for select merchant payments and possible fees on high-value transactions. The new proposal broadens the potential scope through a negative-list framework.
Omni-channel is accelerating 206,100% QoQ, increasing the relevance of payment acceptance costs across channels.
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