Brief by Shorts91 Newsdesk / 01:48pm on 15 Sep 2026,Tuesday India
A 0.4% Merchant Discount Rate (MDR) may be charged on UPI payments above ₹2,000 made to merchants, according to a new proposal. The move is aimed at helping banks and payment companies cover the cost of handling UPI transactions. The proposed charge would apply to merchant payments, while person-to-person transfers would remain free. The government has not yet taken a final decision on introducing the charge. UPI has become one of India’s most widely used payment methods, with millions of transactions made every day. The proposal could affect businesses that receive large-value payments through UPI.
