UPI merchant MDR below 0.25% could fund payments ecosystem, analysis says
A 0.25% charge on UPI P2M transactions above ₹2,000 could generate an estimated ₹17,416 crore annually, potentially supporting banks, payment providers and NPCI. The analysis comes as FY27 UPI/RuPay incentives are budgeted at ₹2,000 crore.
A proposed MDR on UPI merchant payments could be set below 0.25%, according to the analysis. Charging P2M transactions above Rs 2,000 at 0.25% could generate an estimated Rs 17,416 crore annually for banks, payment providers and NPCI.
Why this matters
The analysis follows signals that Lok Sabha cleared a bill enabling MDR on UPI merchant payments, while the finance minister said no MDR decision has been taken and any levy would target merchants, not users.
Omni-channel is accelerating, up 222000% QoQ.