Nirmala Sitharaman: merchants pay 0.4% MDR on UPI over ₹2,000
Business
Finance Minister Nirmala Sitharaman just cleared the air: starting October 15, a 0.4% Merchant Discount Rate (MDR) will apply to person-to-merchant (P2M) UPI payments over ₹2,000, but only merchants have to pay it, not you.
She compared it to card payment fees that have been around and stressed this isn't a tax or extra charge for shoppers.
Government to prevent MDR pass-through
The government is teaming up with banks and trader groups to make sure no extra costs sneak onto your bill.
They're also planning awareness campaigns so people don't get confused about how MDR works (think Visa/Mastercard charges).
For now, whether MDR itself will attract GST remains under discussion.
The bigger goal? Strengthening India's digital payments scene without making things harder for users.