Brief by Shorts91 Newsdesk / 03:31pm on 16 Sep 2026,Wednesday Business
Traders are worried about the new 0.4% Merchant Discount Rate (MDR) on certain UPI payments above ₹2,000. Several market groups said the charge could increase costs for businesses. Some traders warned they may encourage customers to pay in cash, especially during the festive season. The government has said customers cannot be charged the MDR. Small merchants earning up to ₹1 lakh a month through UPI QR codes will also remain exempt. The government estimates about 96% of merchant transactions will continue to have zero MDR. Traders, however, fear the new charge could make digital payments less attractive.
