Kerala jewellers seek MDR exemption for high-value UPI payments
Kerala’s gold jewellery trade body has sought an exemption from merchant discount rates on high-value UPI transactions, arguing that charges capped at ₹300 per payment would add to operating costs for jewellery SMEs.
What happened
Kerala Gold and Silver Merchants' Association · Kerala gold jewellery merchants seek MDR exemption for high-value UPI payments, saying capped charges of up to
Key facts
- MDR up to ₹200 on ₹50,000 UPI transaction
- MDR up to ₹300 on transactions exceeding ₹75,000
- maximum MDR cap of ₹300 for transactions of ₹75,000 and above
What changed
Kerala gold jewellery merchants seek MDR exemption for high-value UPI payments, saying capped charges of up to ₹300 per transaction would add significant operating costs for jewellery SMEs already facing GST, hallmarking, banking, security and employee expenses.
Why this matters
Jewellery retailers should prepare for higher payment acceptance costs on high-value UPI sales and assess whether pricing, payment routing or customer incentives can protect already-thin margins.
What to watch
- Any Finance Ministry, RBI or NPCI consultation on UPI sustainability, merchant pricing or high-value transaction categories.
- Clarification of the proposed MDR rate, transaction threshold, effective date and whether costs apply to UPI, RuPay credit-on-UPI or all payment rails.
- Statements from national jewellery bodies, major chains and bank acquirers indicating coordinated action.
- Growth in high-value UPI payment volumes and evidence of merchant steering toward bank transfer or cash.
- Budget or policy announcements on compensation for zero-MDR UPI and RuPay transactions.