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FM says proposed UPI MDR is not a tax and will not burden consumers

2 sources · first seen 13:26 25 Sept · updated 13:51 25 Sept

The brief

Written from 2 reports · check the source before you trade
  • MDR will not be passed on to consumers
  • The merchant payment ecosystem will bear the MDR
  • Payment firms and merchants must absorb MDR; consumer-facing UPI adoption is shielded

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UPI5 todayNirmala Sitharaman3 todayFintech and payments10 todayTaxes22 today

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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.

Saturday, 26 September

  1. 2 sources
    NSE chief says no government talks on UPI MDR; brokers and clients should resolve dispute

Friday, 25 September

  1. UPI MDR: Where will 0.4% fee go? FM clarifies banks, payment gateways & apps to get a share | Check breakdown
  2. UPI MDR explained: 6 myths about the new framework and what it means for consumers and merchants
  3. 2 sourcesYou are here
    FM says proposed UPI MDR is not a tax and will not burden consumers
  4. 2 sources
    Government and banks to set subsidy for UPI after MDR begins
  5. Finance Ministry to talk to IBA to ensure MDR is not passed on to consumers
  6. Government tells banks to shield consumers from UPI fees

See all 32 updates →

Read the reports

2 reports · earliest 13:26
Business LineMerchant Discount Rate on UPI not a tax, cess or surcharge; will not burden consumers: FM13:26Fortune IndiaProposed UPI MDR not a tax, cess or surcharge; will not burden consumers: FM Sitharaman13:51