The Economic Times

UPI MDR seen as sustenance fee, not windfall; small merchants remain shielded

A new merchant discount rate will fund UPI's expanding infrastructure costs. Large value person-to-merchant transactions above two thousand rupees will incur a fee. This framework shields small merchants and everyday consumer transactions from charges. The revenue distribution aims to support issuing banks and payment applications. This policy seeks to ensure UPI's long-term financial sustainability and accessibility.