Tax Bill removes blanket zero-MDR bar for UPI and RuPay debit payments
The Finance Ministry has tabled legislation that would replace the blanket prohibition on merchant discount rates for UPI and RuPay debit-card transactions with selective exemptions. The Bill also extends tax incentives for electronics supply-chain firms and bonded warehouses through FY2040-41.
What happened
The government tabled a Bill removing the blanket zero-MDR bar on UPI and RuPay debit-card payments, allowing selective fee exemptions. It also extends tax
Key facts
- FY 2040-41
- 25%
- 10%
- 2007
- 2026
Why this matters
Payments, acquiring and retail-tech players may gain new partnership and pricing opportunities as merchants reassess UPI and RuPay economics under a potentially tiered MDR regime.