Bill to enable UPI MDR likely to be tabled on Tuesday

The Centre is likely to introduce a Bill in Parliament on Tuesday to amend the Payment and Settlement Systems Act, 2007, paving the way for the levy of merchant discount rate (MDR) on UPI and RuPay debit card transactions, sources said.

The government had scrapped MDR on UPI and RuPay debit card transactions from January 2020 to encourage digital payments and expand merchant acceptance. Before that, merchants paid an MDR of less than 1% on UPI and RuPay debit card transactions.