India, Sept. 18 -- The Union finance ministry is preparing a monitoring system to ensure that the burden of the Merchant Discount Rate (MDR) on Unified Payments Interface (UPI) transactions above Rs.2000 is not passed on to consumers.

According to sources quoted in a PTI report, the ministry has already initiated discussions with payment aggregators and other stakeholders in the UPI ecosystem to sensitise them about the MDR and ensure that the burden is not passed on to consumers.

The NPCI, which operates the UPI platform, issued a circular on September 15 introducing MDR for certain UPI transactions to create a sustainable revenue framework for the digital payments ecosystem.

A 0.4 per cent MDR will apply to person-to-merchant UPI pay...