Economy
Government Proposes 25-30 bps MDR Fee on UPI Transactions
Moneycontrol1h
THE BRIEF
1
The Finance Ministry is moving to implement a Merchant Discount Rate (MDR) of 25-30 basis points on UPI transactions exceeding ₹2,000.
2
The proposed change is expected to generate approximately ₹13,000 crore in annual revenue for the payment ecosystem.
3
This policy shift marks a departure from the zero-MDR regime, aiming to incentivize digital infrastructure investment by banks and payment providers.