FM says any UPI MDR would apply to merchants, not end users

Finance Minister Nirmala Sitharaman said the government has not taken a final decision on merchant discount rates for UPI. Any MDR, if introduced after proposed payment-law amendments and an NPCI committee decision, would be levied on merchants rather than consumers.

— Filed Thu, 6 Aug, 2026, 21:53 IST · Source The Hindu BusinessLine · Updated

Finance Minister Nirmala Sitharaman said any merchant discount rate would apply to merchants, not UPI users. The government has not taken an MDR decision; NPCI’s UPI committee will decide after Parliament passes proposed amendments to payment-settlement law.

Why this matters

The statement follows Lok Sabha clearance of a bill that could enable MDR on UPI merchant payments and reiterates Sitharaman's earlier position that no UPI MDR decision is final and users would not pay.

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