Proposed UPI MDR on high-value merchant payments could reshape retailer payment costs
A proposed Payments and Settlement Systems amendment could allow MDR on UPI merchant transactions above ₹2,000 while preserving free P2P and small-merchant payments. Large e-commerce sellers including Amazon and Flipkart could face added acceptance costs, while banks and payment platforms gain a new revenue pool.
A proposed Indian bill could permit MDR on high-value UPI merchant payments, while retaining free P2P and small-merchant transactions. It may raise costs for large e-commerce merchants and create new fee income for banks and payment platforms.
Why this matters
The proposal extends UPI's recent MDR debate after signals on a potential ₹13,500–16,000 crore revenue pool and RBI's statement that no MDR decision has been made.
Retail-company signals are accelerating, up 166022% QoQ.