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Government and banks to set subsidy for UPI after MDR begins
The brief
- MDR collections are not expected to cover the full cost of running UPI
- The Finance Ministry will discuss the subsidy with banks
- The subsidy decision affects banks and listed payment companies’ UPI economics
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- UPI MDR explained: Will mutual fund SIPs and lumpsum investments be affected?
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
- Government and banks to set subsidy for UPI after MDR begins