New Delhi, Sept 15: Central financial authorities revised the payment structure for digital transactions by setting a 0.4 percent Merchant Discount Rate on UPI commercial transactions above ₹2,000. Under the newly implemented guidelines, the total fee levied on any eligible high-value transaction will not exceed ₹300.
Banking officials and payment processors stated that the decision addresses multi-year industry demands for a sustainable revenue model. The zero-MDR policy, introduced in early 2020 to accelerate digital onboarding, faced criticism from financial institutions citing high compliance and operational costs associated with handling massive transaction volumes.
Representatives declared that small merchants and ordinary consumers conducting everyday transactions below the ₹2,000 threshold will experience no financial impact. State regulatory bodies maintained that the move balances consumer adoption with the operational needs of India’s evolving digital payments ecosystem.
