MDR rollout will be monitored to protect users
The government plans to closely monitor the rollout of Merchant Discount Rate (MDR) on October 15 to ensure merchants do not pass these charges to customers, officials announced. MDR is essential to sustain and grow the fintech ecosystem, the official stated, adding that the government is in touch with payment aggregators. The input tax credit can help merchants offset their tax liability.
Transactions below ₹2,000 are exempt from MDR, so small merchants won't face GST. The government introduced MDR on UPI transactions to protect the country's sovereignty in the electronic payment ecosystem, the finance ministry clarified, rejecting opposition claims that the levy was imposed under external influence. The MDR on UPI transactions above ₹2,000 will be capped at ₹300 per transaction.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
