UPI MDR from October 15 will be paid by merchants, not consumers, says Nirmala Sitharaman

The new Merchant Discount Rate (MDR) on select high-value UPI transactions will be paid by merchants and will not be passed on to consumers, Finance minister Nirmala Sitharaman said on Friday, rejecting criticism from Opposition parties that the charge amounted to a tax or surcharge.

The 0.4 per cent MDR will apply from October 15 to specified person-to-merchant UPI transactions above Rs 2,000, while person-to-person transfers and payments up to Rs 2,000 will remain free. RuPay transactions will also continue to be free.