India, Sept. 29 -- UPI's MDR Showdown

Indian retailers are set to stage a nationwide "No UPI Day" on October 2. Up in arms against the proposed MDR on UPI payments, industry bodies are flagging margin erosion and Rs.9,000 Cr in annual costs. So, can the retailers and the government find a middle ground?

MDR At The Doorstep: The Centre recently unveiled a new framework that allows a 0.4% MDR on P2M UPI payments above Rs.2,000, capped at Rs.300. The new regime will come into effect from October 15. This ends the zero MDR regime, which has been in place since 2020. While the government says only 4% of merchant transactions will be affected, retailers argue otherwise.

Retailers Vs MDR: Industry bodies oppose the new MDR regime because it t...