Centre mulls bringing back MDR charges on UPI and RuPay transactions if your annual turnover exceeds…

The government can transform the charges of trade discount rates on large merchants on UPI and Rupay transactions on digital payments.

The Central Government is considering charging a commercial discount rate (MDR) on transactions on transactions by the Common Payment Interface (UPI) and Rupay Debit cards, economic times reports. This proposal, which is now taking into account the relevant departments, initiated banking institutions. MDR, which was previously eliminated to encourage digital payments, could soon be extended to the traders circulating the annual traders, which exceed the 40th rubles.

The government is studying the implementation of a high price system through the refusal of the FY22 budget. This will see larger traders who collide with higher accusations, while circulating people under 40 Lakhs will continue to use free transactions. “The logic is that if large merchants who have card machines are paying for MDR other payment tools such as Visa and MasterCard Debit cards and all forms of credit cards, then why don’t pay for payments for UPI and Rupay Debit cards. Explained the senior banker involved in the discussions.

Before removing MDR’s fees, traders paid more than 1% of the transaction amount like the bank. Recovery aims to put the playing field as UPI, and Rupay has become dominated by retail fees. Industry votes believe that bigger traders are already used to paying MDR on other platforms and can absorb similar charges on Upi and Rupay transactions.

One of the primary reasons to restore these accusations is the financial stability of payment aggregates and Fintech firms. “Payment companies are now regulated by online PA rules. The value of their compliance was shot huge. If they can’t make money on payments, businesses will become flawless, “said the leading banker.

Industrial States highlight that before the government subsidies banks and Fintechs to offer these services free of charge, the current distribution of 437 RS Rs for payment subsidies. The banks are still waiting for the previous year’s expired subsidy payments.

India National Payment Corporation (NPCI) reports that UPI has pledged 16 billion transactions in February 2025, which is almost 22 lakh raves. The simple volume of transactions emphasizes the critical role of UPI in the Digital Payment Ecosystem of India, but also highlights the financial tension of MDR operating service providers.

The government weighs these considerations, the possible re-extinguishing of MDR’s accusations remains a controversial problem with the consequences of large-scale non-retailers and digital payments. The payment industry leaders continue to be involved with policy makers, looking for a resolution that balances financial stability in the increase in digital transactions.