Sitharaman says any future UPI MDR would be levied on merchants, not users
The government is considering a merchant discount rate for large businesses, while small merchants, low-value transactions and peer-to-peer UPI transfers may remain exempt. Any move remains subject to parliamentary passage of the Taxation and Other Laws (Amendment) Bill, 2026 and NPCI consultations.
Finance Minister Nirmala Sitharaman said any future UPI merchant discount rate would apply to merchants, not users. The government is considering MDR for large businesses, while small merchants, low-value payments and peer-to-peer transfers may remain exempt.
Why this matters
The statement advances recent debate over calibrated UPI merchant fees, following an editorial backing a small levy and reader letters supporting fees for larger transactions.
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