Govt to ensure merchants bear UPI MDR fees, not pass them on to customers

In response to opposition calls to reverse the 0.4 per cent Merchant Discount Rate (MDR) on certain UPI transactions, government sources said on Thursday that the decision had been taken after careful evaluation. The government will closely monitor its implementation to prevent merchants from passing on the costs to customers.

“Steps will be taken to address gaps in enforcement. The government has engaged in talks with payment aggregators. It will closely monitor implementation to ensure that merchants do not pass on the costs to consumers,” sources said.