Paytm backs 0.4% UPI MDR above ₹2,000, calling it small-merchant protection
Paytm CEO Vijay Shekhar Sharma said the proposed 0.4% MDR on specified UPI merchant payments above ₹2,000 would support payment-platform sustainability while preserving free payments for smaller merchants. The change is slated to take effect from October 15, 2026; about 96% of P2M transactions would remain unaffected.
What happened
Paytm CEO Vijay Shekhar Sharma backed a 0.4% MDR on specified UPI merchant payments above Rs 2,000, saying it protects small merchants and improves platform
Key facts
- 0.4% MDR
- UPI merchant transactions above Rs 2,000
- MDR effective October 15
- approximately 96% of P2M transactions unaffected
- merchant payments up to Rs 2,000 remain free
What changed
Paytm CEO Vijay Shekhar Sharma backed a 0.4% MDR on specified UPI merchant payments above Rs 2,000, saying it protects small merchants and improves platform sustainability. P2P transfers and most smaller P2M payments remain free.
Why this matters
Paytm’s support for a 0.4% MDR on specified UPI payments above ₹2,000 signals a potential new revenue stream for payment platforms while keeping most merchant transactions free.