Topic
mdr
E-Commerce & Marketplaces Parliamentary panel recommends expeditious MDR rollout on high-value UPI transactions
According to Business-Today, a Parliamentary panel has recommended the expeditious introduction of a calibrated Merchant Discount Rate (MDR) on high-value UPI transactions. The report follows Parliament clearing amendments to the Payment and Settlement Systems Act, 2007, that enable banks and payment providers to levy charges on notified digital payment modes. The committee noted the Rs 2,000 crore zero-MDR compensation covers only about 10 per cent of the industry's estimated Rs 20,700 crore operating costs.
E-Commerce & Marketplaces What is the proposed UPI MDR, who pays the final cost, and how does it work?
UPI transactions in India may soon attract a Merchant Discount Rate for certain merchant payments, with a proposed Rs 2,000 threshold and 0.25%–0.4% fee. Consumers and person-to-person transfers will remain free, according to Business Today. The government says the fee is needed to make the UPI ecosystem financially sustainable.
E-Commerce & Marketplaces UPI MDR Charges: 0.25–0.4% Levy Proposed on Transactions Above Rs 2,000 for Merchants
The Lok Sabha cleared a Bill amending the Payment and Settlement Systems Act, 2007, enabling charges on UPI and other notified payment modes. The government is expected to permit a Merchant Discount Rate of 0.25–0.4% on UPI transactions above Rs 2,000 made to businesses, while consumers and small merchants remain exempt, according to Business-Today.
E-Commerce & Marketplaces UPI MDR Clarified: Sitharaman Says Merchants Will Bear Fee, Customers Won't Pay
Finance Minister Nirmala Sitharaman clarified that any Merchant Discount Rate on UPI transactions would be levied on merchants, not customers, responding to Congress leader Jairam Ramesh's concerns. No decision on MDR has been made yet; the NPCI-headed UPI and Services Steering Committee will examine the matter only after Parliament passes the Taxation and Other Laws (Amendment) Bill, 2026.
E-Commerce & Marketplaces RBI Governor Says 'Someone Has to Pay' on UPI MDR Above Rs 2,000
India is expected to allow a Merchant Discount Rate of 0.25% to 0.4% on UPI transactions above Rs 2,000 made to businesses. RBI Governor Sanjay Malhotra said the costs have to be paid by someone, while P2P payments are likely to remain exempt.
E-Commerce & Marketplaces MDR to help fintechs recover costs, boost their IPO hopes
India plans to introduce a merchant discount rate on large-value UPI transactions, helping fintechs recover transaction costs and boosting IPO prospects for PhonePe, Razorpay, PayU, PayNearby and Innoviti. Jefferies estimates a 15-30 bps MDR on P2M transactions above Rs 2,000 could generate Rs 5,000-10,000 crore annually.
E-Commerce & Marketplaces India moves to allow UPI merchant discount rate via payments act amendment
India has moved a step closer to allowing merchant charges on UPI transactions after proposed amendments to the Payment and Settlement Systems Act were introduced in Parliament by Finance Minister Nirmala Sitharaman. The amendment would create the legal framework for a merchant discount rate; sources quoted by Reuters say no fee quantum or transaction categories have been decided, while a government source cited a possible 0.3%–0.5% MDR on transactions above Rs 2,000 for merchants with turnover above Rs 15 million.