No decision yet on merchant discount rate on UPI deals
9 Articles
9 Articles
Will UPI payments remain free? RBI Governor clarifies there is no decision yet on Merchant Discount Rate
The RBI Governor said it is too early to decide whether UPI transactions will attract Merchant Discount Rate (MDR), even as the proposed Payment and Settlement Systems (Amendment) Bill has revived the debate.
There are plans to impose a charge on UPI payments over ₹2,000. The question now is who will be required to pay this charge and who will be exempt. Let's explore this in detail.
The Economic Times
Times of IndiaNo decision yet on merchant discount rate on UPI deals
Central bank governor Sanjay Malhotra stated it is premature to discuss UPI transaction charges. Discussions are ongoing regarding the payment mechanism's future and costs. The government is reportedly amending laws to allow merchant discount rates on select UPI transactions. This move follows Finance Minister Nirmala Sitharaman's introduction of a new bill. The central bank's current focus remains on strengthening UPI adoption across India.
Finance Minister Nirmala Sitharaman said that the Services Steering Committee led by UPI and NPCI has not yet taken any final decision on MDR.
UPI MDR Explained: What the Proposed Charges on Transactions Above Rs 2,000 Really Mean for You
Free UPI transfers may not stay free forever for everyone. The Finance Ministry has introduced the Payment and Settlement Systems (Amendment) Bill, 2027, in Parliament, opening the door for a possible return of the Merchant Discount Rate (MDR) on select UPI payments — but before anyone panics, here’s what’s actually on the table. What Is […] The post UPI MDR Explained: What the Proposed Charges on Transactions Above Rs 2,000 Really Mean for You …
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