Govt Notifies New Rules, No MDR For UPI Transactions Under ₹2,000

by · Inc42

SUMMARY

  • In a gazette notification, the finance ministry directed the banks and other system providers to not impose any charge on RuPay-powered debit cards and UPI payments of up to ₹2,000
  • An MDR on select merchant payments would give banks and payment companies a direct revenue stream from UPI transactions, which currently attract no merchant fee
  • The ball now lies in the court of the UPI and Services Steering Committee, headed by NPCI, which will now decide the specific MDR framework and rates for UPI transactions