Finance Minister Nirmala Sitharaman has clarified that the new Merchant Discount Rate on specified UPI payments above ₹2,000 is not a government tax and cannot be passed on to customers. The 0.4% charge will instead be borne within the merchant and digital payments ecosystem. UPI MDR Money Will
The Reserve Bank of India has backed the introduction of a 0.4% Merchant Discount Rate on larger UPI merchant payments, saying the change will strengthen the long-term sustainability of India’s digital payments ecosystem. The revised framework will take effect from October 15, 2026. UPI Payments Above ₹2,000 Face 0.4% MDR Under the new structure, person-to-merchant […]








