Government Proposes MDR on UPI Transactions Above ₹2,000
The government has proposed a Merchant Discount Rate (MDR) of 0.25–0.5% on UPI transactions exceeding ₹2,000, reversing a decade-long policy of no charges. This move could reduce incentives for banks and fintechs to invest in UPI, potentially weakening its role in promoting financial inclusion, formalisation, and broader digital payment adoption in India.
Hindu Business·



