FM Sitharaman says UPI MDR not to be borne by end users, applies only to merchants
Economic Times 2 hrs ago·6 Aug 2026, 6:40 pm
Finance Minister Nirmala Sitharaman clarified that the proposed Merchant Discount Rate (MDR) on UPI transactions would be borne solely by merchants, not consumers. This distinction is crucial as it aims to prevent a direct financial burden on the millions of users who rely on the Unified Payments Interface for daily transactions. The Finance Minister also emphasized that no final decision has been made yet, noting that the National Payments Corporation of India (NPCI) steering committee will review the matter once the necessary parliamentary amendment is passed.
This clarification is significant for investors as it addresses a major point of contention regarding the future of the UPI ecosystem. By shifting the potential cost to merchants, the government appears to be prioritizing the continued growth and adoption of digital payments. Investors should watch for the outcome of the parliamentary process and any further statements from the NPCI regarding the implementation timeline of this policy.
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