FM says UPI MDR, if levied, would apply to merchants—not users
Finance Minister Nirmala Sitharaman said merchant discount rate charges apply to merchants rather than UPI end users. A proposed legal amendment would let the government exempt notified electronic payment modes from charges, while NPCI’s steering committee has yet to decide on UPI MDR.
Finance Minister Nirmala Sitharaman said MDR applies to merchants, not UPI users. The proposed amendment would allow the government to exempt notified electronic payment modes from charges; NPCI’s steering committee has yet to decide on UPI MDR.
Why this matters
The statement follows analysis arguing UPI merchant MDR below 0.25% could fund the payments ecosystem and Lok Sabha’s passage of a bill that could enable MDR on UPI merchant payments.
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