Govt Opens Door to MDR On UPI, To Amend Digital Payment Rules

by · Inc42

SUMMARY

  • The government has proposed an amendment that would enable the Centre to directly notify which electronic payments methods are to remain exempt from MDR charges
  • The move could open the door for the reimposition of MDR on UPI transactions after six years even though the zero fees regime has spurred widespread UPI adoption
  • Earlier last week, Inc42 reported that the government was weighing imposition of 0.07% MDR on transactions above ₹2,000 for businesses with an annual turnover of ₹1.5 Cr or more