The Indian government is implementing a new merchant discount rate framework for UPI transactions to support ecosystem sustainability while exempting small transactions.
Reader brief
No Reader read of this story yet.
What was said2
Attributed, verbatim. Every quote is checked against the article it came from. One that does not match is not shown.
M. Nagaraju
2 quotes“I would not describe it as a crisis, but the risks were real, and they were formally placed before the government.”
In the article
…and eligible small merchants remain outside the charge framework. He said the issue was not an immediate crisis but a growing sustainability concern that had been formally brought to the government's attention. “ I would not describe it as a crisis, but the risks were real, and they were formally placed before the government. " Edited excerpt: What was the tipping point? In 2025, the government had not taken any decision to introduce MDR on UPI. The statement issued at that time responded to media reports claiming that such a decision had…
“The MDR on higher-value merchant payments provides a predictable source of funding for infrastructure and security.”
In the article
…also carries costs for banks, since each merchant requires verification, QR deployment and support, and zero MDR provided no return on that effort for larger merchants. The framework addresses these concerns directly. The MDR on higher-value merchant payments provides a predictable source of funding for infrastructure and security. Why 0.4% and why a ₹2,000 threshold? What data, economics or policy calculations drove the government to these specific numbers? The ₹2,000 threshold follows the line already used in the government’s incentive scheme…
Related coverage
Grouped by subject or cast signals while the story boundary is under human review. No chronology is implied.
Loading the story…