Tax Bill removes blanket zero-MDR bar for UPI and RuPay debit payments
The Finance Ministry has tabled legislation that would replace the blanket prohibition on merchant discount rates for UPI and RuPay debit-card transactions with selective exemptions. The Bill also extends tax incentives for electronics supply-chain firms and bonded warehouses through FY2040-41.
The government tabled a Bill removing the blanket zero-MDR bar on UPI and RuPay debit-card payments, allowing selective fee exemptions. It also extends tax incentives for electronics supply-chain firms and bonded warehouses through FY 2040-41.
Why this matters
The bill follows recent signals that the government proposed MDR on UPI payments from large merchants and that a proposed Payment Bill could revive MDR on large-value UPI merchant payments, indicating a shift toward targeted pricing.
Retail-company signals are accelerating (+202071% QoQ).