FM Sitharaman: Government will not levy MDR charges on UPI transactions
Finance Minister Nirmala Sitharaman has clarified that the government will not impose any Merchant Discount Rate on UPI transactions. For transactions exceeding Rs 2,000, the MDR will be borne by merchants and banks, not consumers. NPCI CEO Dilip Asbe noted that 75 percent of UPI transactions remain unaffected by MDR charges. The bulk of fees are associated with larger businesses that already face higher credit card processing costs.
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