Government promises minimal MDR on select UPI merchant transactions
The Indian government has announced that a merchant discount rate (MDR) will soon be introduced for UPI transactions, but assures it will remain nominal. The fee will apply only to specific merchants and transactions exceeding a certain threshold. Person-to-person UPI payments will continue to be free for all users. The move aims to ensure the long-term financial sustainability of India's digital payments infrastructure. It is also intended to support the expansion of digital payment services into rural and semi-urban areas.
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