New Delhi, July 17 -- The Centre is considering bringing back the merchant discount rate (MDR) on Unified Payments Interface (UPI) transactions for large merchants, according to an Economic Times report citing people familiar with the matter.

As per the report, the proposal under discussion is to levy MDR on merchants with an annual turnover of around Rs.1 crore to Rs.1.5 crore, and only for UPI transactions exceeding Rs.2,000. The final decision is yet to be taken.

If implemented, it would mark a significant policy shift after the government removed MDR on UPI payments in January 2020 to accelerate digital payment adoption.

Merchant Discount Rate, or MDR, is a fee that merchants pay to banks and payment service providers whenever a cu...