UPI MDR may return for payments above ₹2,000 at large merchants
India is reportedly weighing a 0.05%-0.07% MDR on UPI transactions above ₹2,000 for high-turnover merchants, while exempting most small businesses. No formal proposal has been announced.
India is reportedly considering a 0.05%-0.07% MDR on UPI payments above ₹2,000 at large merchants, while exempting most small businesses. The move could improve payment-aggregator and bank economics but faces turnover-verification and merchant pass-through challenges.
Why this matters
The reported MDR review follows UPI’s overseas expansion through NPCI partnerships, privacy scrutiny over merchant access to customer data, and Delhi data shutdowns that disrupted UPI payments and app-based retail services.
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