Government proposal could reopen UPI MDR debate for larger merchants
The Centre is set to amend digital-payment rules to selectively exempt electronic payment modes from merchant discount rate (MDR) requirements. If notified, the move could enable UPI charges for larger businesses, raising acceptance costs while improving payment-sector economics.
What happened
Government of India · The government proposes amending payment rules to let it selectively exempt electronic modes from MDR, potentially enabling UPI merchant
Key facts
- UPI MDR proposal: 0.05%-0.07%
- Potential applicability: businesses with annual turnover of ₹1 Cr-₹1.5 Cr or more
- Potential threshold: UPI transactions above ₹2,000
- FY27 digital-payments incentive allocation: ₹2,000 Cr
- July UPI transactions: 2,366 Cr
- July UPI transaction value: ₹29.88 Lakh Cr
- July transaction growth: 4% month-on-month
- July value growth: 3% month-on-month
Why this matters
The proposal could make payments infrastructure, merchant-acquiring and UPI-adjacent assets more strategically valuable, particularly platforms serving enterprise retailers.
Also reported by
- Inc42 · Buzz — Same time