Merchant Discount Rate UPI – newsmantra.in l Latest news on Politics, World, Bollywood, Sports, Delhi, Jammu & Kashmir, Trending news | News Mantra https://newsmantra.in Latest news on Politics, World, Bollywood, Sports, Delhi, Jammu & Kashmir, Trending news | News Mantra Tue, 22 Sep 2026 09:31:34 +0000 en-US hourly 1 https://wordpress.org/?v=7.0.2 https://newsmantra.in/wp-content/uploads/2019/05/cropped-newmantra-logo-32x32.png Merchant Discount Rate UPI – newsmantra.in l Latest news on Politics, World, Bollywood, Sports, Delhi, Jammu & Kashmir, Trending news | News Mantra https://newsmantra.in 32 32 UPI Users to Remain Free of MDR Charges: Sitharaman https://newsmantra.in/upi-mdr-charges-users-nirmala-sitharaman/ Tue, 22 Sep 2026 09:31:34 +0000 https://newsmantra.in/?p=85460 NEW DELHI. Union Finance Minister Nirmala Sitharaman has clarified that eligible UPI users will not be charged Merchant Discount Rate (MDR) on their transactions. She said MDR is a charge within the digital payments ecosystem and is neither a tax nor a cess. The government has directed that the charge should be absorbed within the ecosystem rather than passed on to customers.

Under the revised framework, a 0.4% MDR will apply to specified Person-to-Merchant (P2M) UPI transactions above ₹2,000, subject to a cap of ₹300 for transactions of ₹75,000 and above. The government said around 96% of P2M UPI transactions will remain unaffected, while Person-to-Person (P2P) transactions will continue to be free. MDR will be distributed among participants such as banks, payment service providers and UPI app providers.

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