UPI MDR charges explained: What high-value transaction limit is govt considering?

The government is considering bringing back the Merchant Discount Rate (MDR) for a limited category of high-value UPI transactions as it looks for a sustainable way to fund India’s rapidly expanding digital payments ecosystem.

A Parliamentary Standing Committee on Finance has recommended the early implementation of a calibrated, tiered MDR framework for higher-value merchant transactions while protecting small merchants and person-to-person (P2P) payments.