Proposed UPI MDR could raise payment costs for large retailers
A reported 0.25–0.30% MDR proposal on UPI payments above ₹2,000 could add acceptance costs for organised retail, e-commerce, jewellery, hospitality and consumer durables, while opening a new revenue stream for banks and payment firms. No implementation timeline has been announced.
A proposed MDR of 0.25-0.30% on UPI payments above ₹2,000 to large merchants could raise acceptance costs for organised retail, e-commerce, jewellery, hospitality and consumer durables, while creating payment revenue for banks and fintechs.
Why this matters
The proposal follows recent signals that India is weighing changes to UPI payments above ₹2,000 and that Lok Sabha cleared a bill allowing MDR provisions for specified UPI and RuPay transactions.
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