India weighs UPI MDR for large merchants, testing free-payment model
India may introduce merchant discount rates on UPI payments for large retailers and e-commerce platforms, while preserving free consumer and small-business transactions. Any move would raise payment-acceptance costs for major merchants as the government seeks a more sustainable funding model.
India may restore UPI merchant discount rates for large merchants and major e-commerce platforms, while retaining free payments for consumers and small businesses. The proposed change could raise payment-acceptance costs for large retailers as the government seeks a sustainable UPI funding model.
Why this matters
India's review follows recent RBI signals that it is premature to decide on UPI MDR and that fees could return for higher-value merchant payments, including transactions above ₹2,000.
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