Economy
FM Sitharaman Defends UPI MDR Decision Against Opposition Allegations
The Hindu1h
THE BRIEF
1
Finance Minister Nirmala Sitharaman dismissed Opposition claims that a 0.4% Merchant Discount Rate on specified UPI transactions above ₹2,000 stemmed from foreign pressure.
2
The charge will apply from October 15 for merchant payments exceeding ₹2,000, while person-to-person transfers and transactions up to ₹1 lakh for small merchants remain exempt.
3
Collected charges will be distributed among banks and payment apps, with 40% going to the customer's bank, 30% to gateways, 20% to apps, and 10% to sponsoring banks.