India weighs MDR on high-value UPI payments, potentially ending zero-fee model for larger merchants
A proposal under government consideration could allow 0.3%-0.5% MDR on UPI payments above ₹2,000 for merchants with annual turnover above ₹1.5 crore, while retaining free transactions for smaller businesses. The move could reshape checkout costs for organised retail and digital-payment providers.
India has proposed amendments to enable MDR on certain UPI payments. Options include a 0.3%-0.5% fee on transactions above ₹2,000 for merchants with annual turnover above ₹1.5 crore, while preserving free UPI for smaller merchants.
Why this matters
The proposal follows recent signals that UPI remains free for now, while RBI has said it is premature to decide on MDR for UPI merchant payments.
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