UPI Merchant Discount Rate (MDR) Likely to Return for Large Transactions

Reports suggest that a Merchant Discount Rate (MDR) may be reintroduced for UPI transactions of ₹2,000 and above within the next two weeks.

The move aims to balance the sustainability of digital payment infrastructure with the need to keep UPI accessible and free for smaller retail users.

Banks and fintech companies are preparing for the shift, which follows years of zero-MDR policy that has been in place since January 2020.