UPI MDR decision completely professional, no external pressure: FM Sitharaman
Sitharaman rubbished the Opposition's allegations that the government had yielded to foreign pressure, saying the MDR was not a tax and would not accrue to the government
Finance Minister Nirmala Sitharaman stated that the recent decision to impose a 0.4% Merchant Discount Rate (MDR) on specific UPI transactions above ₹2,000 was a professional decision by the payment ecosystem, and that no external pressure was involved. She dismissed allegations from the Opposition, both from the Opposition parties and Congress, that the government yielded to foreign pressure, particularly from the U.S. Sitharaman clarified that the MDR is not a tax and the collected amount will be distributed among banks, payment gateways, UPI apps, and sponsoring banks, not to the Consolidated Fund of India.
Starting from October 15, the MDR will apply to person-to-merchant UPI payments above ₹2,000, capped at ₹300 for transactions of ₹75,000 or more. Small merchants collecting up to ₹1 lakh monthly via UPI QR codes will remain exempt from the charge, benefiting about 96% of all merchant transactions. The NPCI established a dedicated fund using 5% of MDR collections to promote UPI usage among small businesses.
Written by urgent.news from The Hindu's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- UPI MDR decision completely professional, no external pressure: FM Sitharaman economictimes.indiatimes.com
