UPI MDR may return for higher-value payments at large merchants

Proposed payment-law changes could allow merchant discount rates on UPI transactions above Rs 2,000 at larger businesses. No charges are in force yet: the government has not notified rates, merchant criteria or final thresholds, while small purchases and P2P transfers are expected to remain exempt.

— Filed Wed, 5 Aug, 2026, 13:40 IST · Source ET Small Business · Updated

Proposed payment-law changes could enable MDR on higher-value UPI payments to large merchants. Rates, thresholds and coverage remain undecided, but a Rs 2,000 floor is under discussion. Small purchases and person-to-person transfers are expected to remain exempt.