Fintech industry seeks UPI merchant discount rate levy on large sellers

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

A proposed framework to introduce a fee structure for Unified Payments Interface (UPI) transactions that will target large merchants, while ensuring that end users continue to make payments without any merchant discount rate (MDR), is being pursued by the sector, according to sources from the financial technology (fintech) industry.

 

This comes even as the Ministry of Finance, in a social media post on X last week, clarified that it did not plan to introduce an MDR on UPI payments.

  If the proposal is accepted, customers who use UPI for daily transactions will not have to pay any fee to continue