Ministry of Finance Proposes MDR Reintroduction on UPI Transactions
| Topic | Details |
|---|---|
| Proposed Amendment | Changes to the Payment and Settlement Systems Act, 2007 to reintroduce Merchant Discount Rate (MDR) on select digital transactions, including UPI transfers. |
| Objective | Ensure long-term sustainability of digital payments infrastructure. |
| Key Change | Removal of zero-MDR mandate for specified transactions. |
| Legislation Route | Proposed via Taxation and Other Laws (Amendment) Act, 2026 (expected introduction in Parliament in August 2026). |