New Delhi, Sept. 17 -- The Department of Financial Services (DFS) on Thursday rejected allegations that the Merchant Discount Rate (MDR) on select high-value UPI transactions has been introduced under external pressure, calling the claims "patently false and misleading."

In a post on X, the department said some allegations in the media had linked the introduction of MDR to concerns raised in the 2026 report of the US Trade Representative (USTR).

The post said USTR report had raised concerns over the inability of US electronic payment service providers to participate in the UPI ecosystem, including credit transactions on UPI, on a level playing field with RuPay. It had also referred to NPCI's 30 per cent market-share limit for third-part...