SynopsisET was the first to report on July 16 that the government is considering reintroducing MDR for UPI transactions undertaken by large merchants. Sources had told ET that the Centre could set the fee at 5-7 basis points if it is reintroduced. MDR is the fee charged to merchants by banks for accepting digital payments through UPI, debit cards or credit cards. UPI transactions have been exempt from MDR since January 2020 after the government made them free to encourage digital payments.The government's proposed amendments to the Payment and Settlement Systems Act have revived hopes of the return of merchant discount rate (MDR) on select UPI transactions, with industry executives and analysts saying the move could help banks and fintech firms recover rising investments in technology, cybersecurity and payments infrastructure.ET was the first to report on July 16 that the government is considering reintroducing MDR for UPINow Playing
Payments bill revives hopes of MDR return on large-ticket UPI transactions - The Economic Times
ET was the first to report on July 16 that the government is considering reintroducing MDR for UPI transactions undertaken by large merchants. Sources had told ET that the Centre could set the fee at 5-7 basis points if it is reintroduced. MDR is the fee charged to merchants by banks for accepting digital payments through UPI, debit cards or credit cards. UPI transactions have been exempt from MDR since January 2020 after the government made them free to encourage digital payments.
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