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MDR applies only on merchants, not on end users: FM
BusinessLine 13 hrs ago·6 Aug 2026, 5:02 pm
Finance Minister Nirmala Sitharaman has clarified that the proposed revision to the Merchant Discount Rate (MDR) applies only to merchants, not to the end users. This statement aims to address concerns that the move might increase the cost of digital transactions for the general public. The government has been considering changes to MDR to support digital payment adoption and reduce the financial burden on small merchants.
This clarification is significant for investors as it suggests the government is focused on supporting the digital economy without directly raising costs for consumers. The move is expected to encourage more businesses to adopt digital payment systems, which could benefit the broader financial technology sector. Market participants will be closely watching for any further announcements regarding the implementation timeline and specific details of the revised policy.
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