India weighs MDR return for large UPI, RuPay merchant payments above ₹2,000
A proposed rollback of zero-MDR rules could let payment providers charge large merchants on higher-value UPI and RuPay transactions. Capitalmind’s Deepak Shenoy has suggested a ₹5 or 0.2% ceiling, while small merchants and consumers would remain protected under the proposal.
India’s Finance Ministry has proposed removing zero-MDR requirements for UPI and RuPay, potentially charging large merchants on transactions above ₹2,000. Capitalmind CEO Deepak Shenoy advocates a ₹5 or 0.2% cap, while small merchants and consumers are expected to remain protected.
Why this matters
The proposal follows signals that MDR could raise payment costs for large retailers and that Lok Sabha cleared a bill enabling MDR for specified UPI and RuPay transactions.
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