UPI MDR: What is being proposed, and who pays the final cost? Explained
The government has clarified that UPI will continue to remain free for consumers and no transaction charges will be applicable to person-to-person payments. The government has also said that if an MDR is introduced in the future it will only be applicable to a limited category of merchant transactions.
The proposed Merchant Discount Rate (MDR) for UPI transactions in India would target a limited category of merchant payments, with an estimated rate of 0.25% to 0.4%. UPI transactions, which have been free until now, may see this fee imposed on specific merchant transactions, excluding routine purchases like groceries or vegetables.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
