Proposed MDR for UPI transactions will be nominal, says government

TNN / Updated: Aug 09, 2026, 03:30 IST

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Government officials have indicated that MDR of 0.25% to 0.4% may be allowed for UPI transactions above Rs 2,000, with a ceiling on the charge.

NEW DELHI: The government said on Saturday that the proposed merchant discount rate (MDR) for UPI transactions will be nominal and apply only to a limited set of merchants for transactions above a threshold, while seeking to assure users that all person-to-person transactions will remain free and consumers who make the payment will not face any fees.

The amendment should be viewed in the context of the government's broader objective of ensuring that India's digital payment infrastructure remains sustainable, competitive, and capable of serving the country's rapidly expanding digital economy."