UPI may add MDR above ₹2,000, putting large-merchant payments in focus
A reported proposal could levy a 0.25%-0.4% merchant discount rate on UPI payments above ₹2,000, primarily affecting larger retailers. P2P transfers and most routine payments are expected to stay free, but thresholds, rates and timing remain undecided pending approvals and RBI guidance.
India may introduce merchant discount rates on UPI transactions above ₹2,000, mainly affecting large merchants. Consumer-to-consumer transfers and most routine payments are expected to remain free, while rates, merchant thresholds and rollout timing remain undecided.
Why this matters
The reported MDR proposal follows recent signals on restoring UPI merchant charges, pressure on fintech unit economics, and possible card switching on high-value purchases.
Retail-company signals are accelerating, up +206386% QoQ.