MDR ‘not a tax’: Finance Ministry to talk to banks, IBA, traders to prevent consumer burden
The Ministry of Finance clarified on Thursday that the Merchant Discount Rate (MDR) to be imposed on UPI transactions over Rs 2,000 is not any form of tax, cess or surcharge.
To ensure that consumers do not bear the burden, the Ministry will hold meetings with traders’ associations, the Indian Banks’ Association (IBA) and merchant bankers.
As per sources in the Ministry of Finance, the government will likely hold a meeting with the Confederation of All India Traders (CAIT) in the coming days to get a better understanding of the on-ground challenges, if any.
