SynopsisThe move would mark a significant shift in India’s digital payments policy, six years after the government made UPI and RuPay debit card transactions free to drive digital adoption. The levy is expected to apply only to large merchants, those with annual turnover of Rs 1-1.5 crore or more while peer-to-peer transfers and payments to small merchants will remain free.The government is likely to peg the merchant discount rate (MDR) on Unified Payments Interface (UPI) transactions at 5-7 basis points if the levy is reintroduced for large merchants, according to people aware of the matter.ET exclusively reported on July 16 that the proposal to bring back MDR on UPI for large merchants is in its final stages and awaiting a final nod.The move would mark a significant shift in India’s digital payments policy, six( Originally published on Jul 16, 2026 )Now Playing
Exclusive: UPI merchant fee likely to be set at 5-7 basis points: sources - The Economic Times
The move would mark a significant shift in India’s digital payments policy, six years after the government made UPI and RuPay debit card transactions free to drive digital adoption. The levy is expected to apply only to large merchants, those with annual turnover of Rs 1-1.5 crore or more while peer-to-peer transfers and payments to small merchants will remain free.
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