FM Sitharaman Clarifies UPI MDR; No Charge Below ₹2,000 - The Economic Times Video
NPCI says the fee will fund UPI expansion, while small merchants remain exempt and only 10% of transaction value may face pass-through charges, officials said.
- On Friday, the All India Mobile Retailers Association called for a 'No UPI Day' on October 2, 2026, protesting the new 0.4% Merchant Discount Rate on UPI transactions exceeding Rs 2,000.
- National Payments Corporation of India introduced the fee to create a sustainable revenue model for the digital payments ecosystem, ending six years of free UPI usage for merchants.
- Mobile retailers estimate the 0.4% charge will impose an unsustainable burden of nearly Rs 500 crore annually on small businesses, raising concerns about potential shifts to cash payments.
- The Supreme Court began hearing a plea on Monday challenging the levy, while Finance Minister Nirmala Sitharaman rejected opposition claims the decision resulted from external pressure.
- Officials insist the fee will not impact 96% of transactions, while the GST Council meets October 7 to review the 18% tax rate applied to the MDR.
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Proposed UPI MDR not a tax, cess or surcharge: FM
New Delhi: The proposed Merchant Discount Rate (MDR) on select high-value UPI transactions is neither a tax, cess nor a surcharge, and the collections will not accrue to the government, Finance Minister Nirmala Sitharaman said, rejecting criticism from Opposition parties. The Finance Minister said the MDR is a charge within the digital payments ecosystem and … Get the latest updates in Hyderabad City News, Technology, Entertainment, Sports, Poli…
Banks to monitor merchants to ensure UPI MDR is not passed on to consumers: Govt sources - The Tribune
Banks will monitor merchants to ensure that the Merchant Discount Rate (MDR) on UPI transactions is not passed on to consumers, while the Indian Banks' Association (IBA) will develop a mechanism to prevent merchants from charging customers extra for digital payments, according to government sources.
Consumer impact of UPI MDR charges limited to around 10 pc of overall value: NPCI CEO
The risk of consumers bearing the cost of UPI Merchant Discount Rate (MDR) charges is limited to around 10 per cent of the overall value on which MDR is collected, NPCI Managing Director and CEO Dilip Asbe said, adding that a majority of merchants are unlikely to pass the charges on to customers.
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