RBI signals possible MDR on UPI merchant payments above ₹2,000
India is considering a 0.25%–0.4% merchant discount rate on business UPI transactions above ₹2,000. RBI Governor Sanjay Malhotra said payment-system costs must be funded, though no implementation date has been set and routine low-value payments are expected to remain unaffected.
India may allow 0.25%-0.4% MDR on business UPI payments above Rs 2,000, potentially affecting merchant payment costs. RBI Governor Sanjay Malhotra said costs must be funded, while officials said routine low-value payments should remain unaffected.
Why this matters
The RBI signal follows reports that India may restore UPI merchant charges and prior warnings that MDR above ₹2,000 could shift large-merchant payments and fintech unit economics.
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