FM Sitharaman clarifies UPI MDR; no charge below ₹2,000 - The Economic Times Video
- Finance Minister Nirmala Sitharaman clarified on Friday that the new Merchant Discount Rate on Unified Payments Interface transactions will not be passed to consumers, rejecting Opposition claims that it constitutes a tax.
- The National Payments Corporation of India introduced this framework to ensure a sustainable revenue model for the digital payments ecosystem, applying a 0.4% MDR to merchant transactions exceeding ₹2,000 from October 15.
- Revenue collected will be distributed among ecosystem participants, with 40 per cent going to customer banks, 30 per cent to payment gateways, 20 per cent to the UPI app, and 10 per cent to the sponsoring bank.
- Sitharaman dismissed allegations of external pressure as "absolutely baseless," emphasizing the MDR is a professional industry decision rather than a government levy accruing to the Consolidated Fund of India.
- Person-to-Person UPI transfers and transactions up to ₹2,000 remain free, while small merchants collecting under ₹1 lakh monthly via QR codes are fully exempt, shielding about 96 per cent of all merchant transactions.
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45 Articles
Proposed UPI MDR not a tax, cess or surcharge: FM
New Delhi: The proposed Merchant Discount Rate (MDR) on select high-value UPI transactions is neither a tax, cess nor a surcharge, and the collections will not accrue to the government, Finance Minister Nirmala Sitharaman said, rejecting criticism from Opposition parties. The Finance Minister said the MDR is a charge within the digital payments ecosystem and … Get the latest updates in Hyderabad City News, Technology, Entertainment, Sports, Poli…
No UPI Transactions On October 2: Traders To Cover QR Codes In Black; Here's Why
<p>THThe organisation has also asked traders to accept cash payments on the day.</p> <p>The protest comes ahead of the new UPI MDR framework that takes effect on October 15. Under the framework, a 0.4% MDR will apply to specified person-to-merchant UPI transactions above ₹2,000, with the fee capped at ₹300 for transactions of ₹75,000 and above. Customers will not be charged the MDR directly.</p> <h2>Why Are Traders Opposing UPI MDR?</h2> <p>CTI …
Sitharaman to meet traders’ body over UPI MDR concerns: Govt sources - The Tribune
Amid the ongoing debate over the proposed merchant discount rate (MDR) on UPI payments, Finance Ministry sources said on Thursday that around 96 per cent of all UPI merchant payments would remain unaffected.
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