Finance Ministry seeks to stop MDR charges being passed on to consumers
The Finance Ministry will engage banks, trader bodies and other stakeholders ahead of the October 15 MDR rollout to ensure merchants do not recover transaction charges from consumers. The talks also spotlight the need to fund UPI’s estimated ₹20,000 crore annual operating costs.
What happened
Finance Ministry of India · Finance Ministry will engage banks, traders and stakeholders to prevent merchant discount rate charges from being passed to
Key facts
- 0.4% MDR
- ₹300 maximum MDR
- ₹2,000 transaction threshold
- ₹20,000 crore estimated annual UPI operating costs
- October 15 rollout
Why this matters
Prioritize partnerships or acquisitions that lower payments acceptance costs or strengthen merchant value-added services, given the emerging need to fund UPI economics without consumer surcharges.