{
  "id": 110139,
  "title": "Govt moves to allow MDR; Qcomm braces for festive rush",
  "url": "https://urgent.news/2026/08/04/govt-moves-to-allow-mdr-qcomm-braces-for-festive-rush",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-04T02:12:50.000Z",
  "source": {
    "name": "Economic Times Tech",
    "slug": "economic-times-tech",
    "url": "https://economictimes.indiatimes.com/tech/newsletters/morning-dispatch/govt-moves-to-allow-mdr-qcomm-braces-for-festive-rush/articleshow/132844051.cms"
  },
  "original_language": "en",
  "account": "The Indian government is set to propose amendments to the IT Act, potentially allowing the levy of merchant discount rate (MDR) on select Unified Payments Interface (UPI) transactions. This move aims to enable banks and fintech companies to recoup the investments they have made in technology, cybersecurity, and payment infrastructure. The finance ministry has suggested amending section 10A of the Payment and Settlement Systems Act, 2007, which currently prohibits banks and payment companies from charging MDR on UPI payments. If implemented, the government intends to impose an MDR fee of between 5-7 basis points on large merchants, with transactions exceeding Rs 2,000. This proposed change is expected to create a new revenue source for payment companies while minimizing any disruption to overall payment volumes. Meanwhile, quick commerce platforms in India are bracing for a festive season rush, with Rakshabandhan on August 28 expected to drive 14-15 million orders on a single day. Companies like Blinkit, Instamart, and Zepto are preparing to manage this surge, but they are also facing challenges related to warehousing and inventory capacity.",
  "summary": "Happy Tuesday! The government is proposing changes that could bring back merchant fees on select UPI transactions. This and more in today’s ETtech Morning Dispatch.",
  "key_points": [
    "Indian government proposes MDR amendment to IT Act.",
    "Banks, fintechs to recoup tech investment via MDR.",
    "Quick commerce prepares for Rakshabandhan surge."
  ],
  "editors_take": "Allowing MDR on select UPI transactions would let banks and fintech firms recover their investments, creating a new revenue source while potentially reshaping the payment landscape.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}