New Delhi, Aug. 7 -- union Finance Minister Nirmala Sitharaman on Friday clarified that if a merchant discount rate (MDR) is introduced for Unified Payments Interface (UPI) transactions, it will be levied only on merchants and not on consumers.
Addressing concerns over the proposed changes to the payment framework, Sitharaman said the MDR, if implemented, would enable banks and fintech firms invest more in payment infrastructure, innovation and security, ultimately benefiting UPI users.
She, however, stressed that no decision has been taken on introducing MDR. The matter, she said, will be considered by the UPI and NPCI Services Steering Committee only after Parliament passes the Taxation and Other Laws (Amendment) Bill, 2026.
The propos...