The central government is in great preparation for UPI. The government is preparing to re -implement the MDR charge on UPI. This charge is not only on UPI but is preparing to charge a charge on Rupay debit card. If this happens, digital payment may be affected. This charge was waived by the government in the year 2022. However, now Fintech companies say that big traders have the ability to bear it. Therefore, merchant discount rate (MDR) should be charged on such traders.
Explain that UPI transactions are increasing rapidly. Therefore, the government wants to bear some of its expenses. In the budget of 2025-26, the government has reduced the payment subsidy from Rs 3,500 crore to Rs 437 crore. Due to which banks are suffering. Prior to 2022, the merchant had to pay some fees. Which is called merchant discount rate (MDR). The bank was given this fee in lieu of transactions.
Big businessmen may get shock
According to media reports, bankers say that a banker said that banks have made a proposal to the government. It suggests that MDR should be applied to those merchants. Whose annual GST turnover is more than Rs 40 lakh. The government is also planning to start a tired pricing system. Under this system, large merchants will have to pay higher charges. At the same time, small merchants will have to pay low fees. The proposal to install MDR on UPI payment by industry banks has been sent to the Central Government. Now the department is considering this matter. If this happens, MDR will return once again.
Know what is MDR?
Digital Payment IndusDries has a merchant discount rate (MDR) that a merchant or shopkeeper has to pay for real time payment that the customer does. Currently, no MDR is applicable to UPI and Rupay debit card payment. These payments are made easier through the National Payments Corporation of India (NPCI). But now the government is also preparing to impose merchant fees on these transactions.
1,611 crore UPI transactions took place in February
Let us know that in February 2025, 1611 crore transactions took place through Unified Payment Interface (UPI). A total of Rs 21.96 lakh crore was transferred during this period. The number of transactions has increased by 33 per cent on an annual basis.
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