Lok Sabha clears framework that could enable UPI merchant fees on larger transactions
Amendments passed by the Lok Sabha would allow the central government to revise zero-MDR rules for notified digital payments. Any UPI merchant fee would require a government notification; reports suggest transactions above Rs2,000 could eventually attract MDR of 0.25%-0.4%, raising payment-acceptance costs for higher-value retailers.
Lok Sabha passed amendments enabling the government to revise zero-MDR rules for notified electronic payments. UPI merchant transactions above Rs 2,000 may eventually face 0.25%-0.4% fees, potentially affecting large-value retailer payment acceptance while P2P transfers remain exempt.