MDR

The Taxation and Other Laws (Amendment) Bill, 2026, could pave the way for an MDR on UPI. Here's how MDR works, the current structure and what may change

Today's opinions examine the RBI's inflation dilemma, rising life insurance surrenders, India's employment crisis, possible UPI charges and the shift from food to nutrition security

Proposed amendment shifts the power to notify fee-protected payment modes to the Centre, a move industry sources see as an early step towards a possible UPI MDR

The report said that UPI is well positioned to consolidate its role as the backbone of India's payments landscape on the back of interoperability and a conducive regulatory environment

MDR refers to a fee that merchants pay banks or companies processing payments for executing a transaction

"The Government remains fully committed to promoting digital payments via UPI," the finance ministry said

MDR refers to a fee that merchants pay banks or companies (fintech) processing payments for executing a transaction

"In the long run, the payments ecosystem has to be viable in a country of our scale," said Bulusu

Education and awareness among the masses will absorb more users in the fold of digital payments

Is it time to rethink the MDR on credit cards in general, to boost their usage?

MDR is a fee charged to a merchant for the payment processing of debit and credit card transactions. It is also referred to as the transaction discount rate (TDR)

In the Union Budget for FY22, no funds were earmarked for recapitalising state-run banks. This was a decadal first, and will temper their eagerness to lend

Banks pay a switching fee running into hundreds of crores every year for UPI, but have to offer the service for free

The RBI has asked for feedback and suggestions before October 3

According to analysts, SBI Card and Paytm stand to gain the most if RBI agrees to levy 2% merchant discount rate (MDR) on RuPay-based credit cards linked to UPI

The RBI has allowed the linking of RuPay credit cards with UPI. But it will also carry a merchant fee. Will UPI on credit cards take off? Or the merchant fee will spoil the party? Let's find out

NPCI set to seek RBI nod for scheme; free swipes at smaller outlets

Payment companies like Visa and Mastercard have been seeking a level playing field with RuPay, claiming the government is favouring the latter

This is to support micro, small and medium enterprises (MSMEs) during the ongoing pandemic the company said.

Industry fears the move to drag the growth of digital payments