Report: MDR on UPI Transactions Over ₹2,000 Expected Within Two Weeks

Reports indicate that the government may introduce a Merchant Discount Rate (MDR) on UPI transactions valued at ₹2,000 or more within the next 14 days to address payment infrastructure costs.

UPI has operated with a zero-MDR policy since January 2020, but the growing volume of digital payments has prompted discussions on sustainable revenue models for banks and payment service providers.

The potential policy shift follows intense debate over the financial viability of the ₹20,000-crore digital payments ecosystem, with stakeholders weighing the impact on small merchants against the need for system upgrades.