Page 2 - Mdr

UPI MDR explained: How new charges compare with debit, credit cards

Credit cards can cost merchants 1.5-2.5%, while debit cards can cost up to 0.9%; new UPI MDR is capped at Rs 300

Run a small shop? How to check whether UPI MDR applies to you

UPI payments above ₹2,000 will attract a merchant fee for eligible businesses from October 15. Here's how small shopkeepers can check if the new MDR rules apply to them

0.4% MDR kicks in from October 15 for ₹2,000-plus UPI payments

Sources stress MDR is not a tax on UPI, since the fee is distributed among participants in the payments chain rather than accruing to the government

Businesses divided on UPI MDR; retailers wary, quick commerce unfazed

Distributors flag concerns over the new UPI merchant charges, while quick-commerce firms expect limited impact as most transactions remain below the Rs 2,000 threshold

Only 17% merchants willing to bear 0.4% MDR on UPI payments: Survey

LocalCircles survey finds 41% of merchants unwilling to bear any MDR on UPI payments above Rs 2,000, while 9% do not accept UPI payments

Next phase for UPI

Modest charges will enable healthy growth

Banks' panel to decide on UPI merchant charges on transactions above ₹2,000

A panel comprising representatives of banks, service providers and various associations would soon take a call on charges to be levied on UPI payments above Rs 2,000 to merchants. The UPI & Services Steering Committee has 22 members, including Indian Banks' Association (IBA) and Payments Council of India (PCI). According to sources, the committee would soon take decision on Merchant Discount Rate (MDR) on UPI transaction above Rs 2,000 based on various factors including self-sustainability and market expansion. For example, merchant charge in Brazil's PIX ecosystem is around 0.33 per cent, while in China, such charge is 0.40 per cent. The government on Monday said that UPI transactions, including through RuPay debit cards, up to Rs 2,000 from person to merchant are free. All person-to-person UPI transactions will also continue to be free. As per a gazette notification dated September 14, no bank or system provider would impose, whether directly or indirectly, any charge on a ...

Two in five merchants unwilling to bear any MDR on UPI payments: Survey

LocalCircles survey finds 41% of merchants unwilling to bear any MDR on UPI payments above ₹2,000, while only 17% would accept a charge of 0.3% or more

Debit card rule may act as template to shield UPI users from MDR fee

A 2017 RBI rule barring merchants from passing debit card MDR to customers could guide safeguards against similar charges on UPI payments

MDR on UPI payments: Six rules govt must settle before charges can start

The Bill opens the door to selective UPI MDR, but leaves the operating details undecided. Here are six questions the final framework will need to answer before any charge takes effect

UPI vs cards: Why merchants pay MDR on cards but not on UPI payments

UPI payments are free for merchants, while card transactions carry MDR. Here's why the two digital payment systems have different costs and how a possible UPI charge could work

The case for keeping UPI free outweighs the costs of its infrastructure

It is worth seeing the argument from a perspective that does not limit itself to asking how UPI infrastructure costs ought to be funded

Is free UPI viable? Pricing vital for digital public infra's future

The debate over UPI pricing is shifting as zero-MDR strains the ecosystem, raising questions over who should bear costs and whether a calibrated MDR can sustain digital public infrastructure

Govt weighing two models to offset UPI costs: FinMin tells Parl panel

Restoring MDR for high-threshold transactions/merchants; or a tiered incentive structure

Best of BS Opinion: Tribunals Bill can make hiring framework more robust

Today's opinions examine tribunal appointments, aviation leadership, consultation gaps in ethanol and UPI policy, philanthropic capital for science, and a true-crime investigation.

MDR in future only on some merchant UPI transactions: FM Sitharaman

"No MDR framework has yet been finalised," Sitharaman said. She added that consumers would continue to make instant digital payments through UPI without paying a transaction charge

Govt clarifies UPI to remain free; MDR may apply to large merchants later

The Ministry of Finance said UPI users will continue to pay no transaction charges, while a possible MDR could apply only to select merchant transactions above a threshold.

Best of BS Opinion: Stock exchange closing auction system needs review

The day's opinion highlights flaws in closing auctions, the funding challenge in digital payments, humane KYC, cognitive warfare and everyday gender discrimination

BS Explainer: MDR on UPI, existing fee structures and what may change next

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

Best of BS Opinion: Inflation projections demand monetary tightening

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