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Sitharaman says UPI MDR above ₹2,000 will not be passed to customers

5 sources · first seen 09:01 25 Sept · updated 17:00 25 Sept

The brief

Written from 5 reports · check the source before you trade
  • MDR on specified UPI transactions above ₹2,000 will be borne within the payments ecosystem
  • Sitharaman said the charge is not a government tax
  • Payments firms and merchants may absorb the charge; consumers are not expected to pay extra

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UPI5 todayFintech and payments10 todayNirmala Sitharaman3 todayTaxes22 today

Linked by the tag Nirmala Sitharaman

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  4. 26 SeptFM Nirmala Sitharaman sets 10%+ growth target, pushes back against suggestion on ‘missed AI bus’Policy · 1 source · Nirmala Sitharaman set a growth target of 10%+
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Part of a developing story32 updates over 5 days

UPI MDR rollout and consumer protection

SBI plans to charge MDR on UPI merchant payments above ₹2,000 from October 15, while officials say MDR collections will not cover UPI’s full operating costs and the government and banks will decide a continuing subsidy. The Finance Minister says the fee will be borne within the merchant-payment ecosystem, not passed to consumers; the government is also discussing safeguards with banks.

Friday, 25 September

  1. 2 sources
    Government and banks to set subsidy for UPI after MDR begins
  2. Finance Ministry to talk to IBA to ensure MDR is not passed on to consumers
  3. Government tells banks to shield consumers from UPI fees
  4. 5 sourcesYou are here
    Sitharaman says UPI MDR above ₹2,000 will not be passed to customers
  5. Unified Payments Interface: Where growth outpaces the rulebook
  6. BT Big Story: The price tag of UPI: Will small shops go back to cash?
  7. UPI transactions costing banks about 21k cr annually, says NPCI CEO Asbe

See all 32 updates →

Read the reports

5 reports · earliest 09:01
Economic TimesFM Nirmala Sitharaman rejects UPI MDR 'misconception,' says charge won't be passed to consumers09:01Business StandardUPI MDR is not a tax, won't mean extra cost for customers: FM Sitharaman09:40Times of India‘Not a government issue’: FM Sitharaman explains where UPI MDR charge goes12:37Moneycontrol‘Not a tax, cess or surcharge’: Sitharaman says customers won’t pay UPI MDR above Rs 2,00014:28Business TodayThis is not a tax, cess, surcharge...: FM Sitharaman explains what the new UPI MDR really means17:00