Payments & Fintech #upi#merchant discount rate
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.
Aug 4, 2026 1 source