No more free UPI in India? Govt weighs fee for payments above Rs 2000
No more free UPI in India? Govt weighs fee for payments above Rs 2000
An MDR is a fee paid by merchants to banks and payments service providers for processing digital transactions
India has moved a step closer to reintroducing merchant fees on transactions made through its popular Unified Payments Interface (UPI) after proposed changes to the country’s payments laws were introduced in parliament on Tuesday.
An amendment to India’s Payment and Settlement Systems Act, tabled in parliament by Finance Minister Nirmala Sitharaman, would allow the introduction of a merchant discount rate (MDR) on digital payments, according to industry and regulatory sources.
The sources said the change creates a legal basis for charging an MDR, but no decision has yet been made on the level of fees or where they would apply.
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