India defends 0.4% UPI MDR above ₹2,000, citing support for domestic payment firms
The Department of Financial Services said MDR on select UPI merchant transactions from October 15 will give smaller domestic payment players a sustainable revenue stream. The government rejected allegations that the move was prompted by external pressure.
What happened
India’s DFS said a 0.4% MDR on UPI merchant payments above ₹2,000 will help smaller domestic payment firms build sustainable revenue and compete. It rejected
Key facts
- 0.4% MDR
- ₹2,000 transaction threshold
- October 15
- 30% market-share limit
- November 2020
- September 15, 2026
- September 14
Why this matters
Payments platforms, acquirers and merchant-tech providers may gain partnership and consolidation opportunities as smaller domestic players use the new MDR revenue pool to expand distribution, merchant services and acceptance infrastructure.