Lok Sabha bill signals potential MDR shift for UPI and RuPay merchants
A Lok Sabha-passed bill proposes enabling MDR levies on UPI and RuPay debit-card transactions while extending electronics-manufacturing tax breaks through March 2041. If enacted, it could reset merchant payment-cost economics and support longer-term device, cloud and data-centre investment.
Lok Sabha passed a bill extending electronics manufacturing tax breaks and enabling MDR levies on UPI and RuPay debit-card transactions. The changes could affect merchant payment costs, electronics supply chains, foreign data-centre investment and Big Tech manufacturing expansion in India.
Why this matters
The bill follows recent signals that India is weighing MDR on UPI and RuPay merchant payments above ₹2,000 and that large retailers could face higher payment costs.
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