Proposed PSS Act change could pave way for MDR on select UPI merchant payments
A proposed amendment to the Payments and Settlement Systems Act would enable future MDR charges on selected UPI transactions. No fee change is immediate: charges would require parliamentary approval and subsequent government or RBI notifications, while consumers would remain exempt.
The government has proposed amending the PSS Act to enable future MDR charges on selected UPI transactions. Retailers, especially large merchants, could face payment-acceptance costs if RBI or government notifications later introduce fees; consumers would remain exempt.
Why this matters
The proposal follows signals that the government may permit MDR on high-value UPI merchant payments and that the Bill reopens the possibility of MDR, particularly for large merchants.
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