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.
Timeline
Sunday, 27 September
- Mobile retailers plan October 2 protest against proposed 0.4% UPI MDR
Retailers across India plan to observe October 2 as “No UPI Day”
- Supreme Court to hear challenge to MDR on UPI merchant payments above ₹2,000
The Supreme Court will hear the plea on Monday
- Who Absorbs UPI MDR? NSE CEO Rules Out Govt Talks As 0.02% Fee On Capital Markets Nears Kickoff
NSE CEO Ashish Chauhan said there were no government talks on the new UPI MDR
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Saturday, 26 September
- NSE chief says no government talks on UPI MDR; brokers and clients should resolve dispute
NSE CEO Ashish Chauhan said there have been no government talks on a new UPI MDR
Friday, 25 September
- UPI MDR: Where will 0.4% fee go? FM clarifies banks, payment gateways & apps to get a share | Check breakdown
Of the 0.4% UPI fee, 40% goes to customer banks, 30% to payment gateways and 20% to UPI apps
- UPI MDR explained: 6 myths about the new framework and what it means for consumers and merchants
The article addresses six myths about the new UPI MDR framework and its effects on consumers and merchants
- FM says proposed UPI MDR is not a tax and will not burden consumers
MDR will not be passed on to consumers
- Government and banks to set subsidy for UPI after MDR begins
MDR collections are not expected to cover the full cost of running UPI
- Finance Ministry to talk to IBA to ensure MDR is not passed on to consumers
Finance Ministry will ask IBA to ensure MDR is not passed on to consumers
- Sitharaman says UPI MDR above ₹2,000 will not be passed to customers
MDR on specified UPI transactions above ₹2,000 will be borne within the payments ecosystem
- Unified Payments Interface: Where growth outpaces the rulebook
UPI growth is outpacing the rulebook, with NPCI acknowledging risks in the ecosystem
- BT Big Story: The price tag of UPI: Will small shops go back to cash?
A 0.4% MDR will apply to merchant UPI transactions above Rs 2,000
Thursday, 24 September
- Ministry of Finnace to engage with banks and traders to allay Merchant Discount Rate concerns
Finance ministry plans consultations with banks and traders over MDR concerns
- UPI MDR: ‘Not a single penny’ will go to govt; earnings to be shared among banks and other entities, says report
New MDR takes effect October 15 and applies to merchants accepting UPI payments above ₹2,000
- Centre to ask banks’ body to ensure consumers don't pay MDR on UPI payments
The Indian Banks’ Association plans outreach to clarify that consumers do not pay MDR on UPI payments
- UPI fee could recover up to Rs 15,000 crore annually while keeping most transactions free
NPCI plans a 0.4% merchant discount rate on UPI transactions
- GST Council to review proposed levy on UPI merchant fees above ₹2,000
The GST Council is scheduled to meet on October 7 to discuss the levy
- Finance Ministry to meet banks and traders on UPI MDR concerns
The IBA will explain UPI MDR through **public campaigns**
- GST Council may review UPI MDR and an 18% tax next month
GST Council will take up a proposal on MDR for UPI
- 0.4% MDR to apply to specified UPI merchant payments above ₹2,000 from October 15
The 0.4% MDR applies to specified UPI merchant payments above ₹2,000 from October 15
- Govt, IBA to work on mechanism to ensure UPI MDR isn't passed on to consumers
Govt and IBA will discuss a mechanism to prevent consumers bearing MDR on specified UPI transactions
- NPCI says no immediate plan to review MDR, charges needed to fund technology and cybersecurity
NPCI has no immediate plan to review UPI MDR charges
- NPCI chief calls for UPI investment to address rising costs and cyber risks
NPCI chief Dilip Asbe said a market-driven model for UPI is needed to fund cybersecurity and infrastructure
- UPI MDR kicks in October 15: Why NPCI expects no hit to transaction volumes
The new Merchant Discount Rate takes effect October 15
- UPI MDR | India may examine demand to exempt select transactions from charges: Report
The Department of Financial Services may examine exempting petrol pumps from UPI MDR charges; no decision has been made
- 75% traders may not face UPI levy, says NPCI MD & CEO Dilip Asbe
75% of traders may not face a UPI levy, NPCI chief Dilip Asbe said
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Wednesday, 23 September
- SBI expects new UPI merchant fee to cover transaction costs and generate a small surplus
SBI will charge a merchant discount rate on UPI payments above ₹2,000 from October 15
