# Sitharaman Says UPI MDR Would Apply To Merchants, Not Customers 2026-08-06T20:50:47+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet Finance Minister Nirmala Sitharaman said merchant discount rate, if introduced for UPI payments, would apply to merchants and not customers. She also said no final decision has been taken. The Lok Sabha passed the Taxation and Other Laws (Amendment) Bill, 2026, which proposes changes to Section 10A of the Payment and Settlement Systems Act, 2007. The Hindu BusinessLine reports that payment modes outside a government-notified list could attract MDR. Congress leader Jairam Ramesh said the amendment could end the legal protection keeping UPI transactions free and eventually burden users. Sitharaman rejected that claim. Aaj Tak, citing government sources, reports that discussions may focus on large merchants, while small businesses, low-value payments and person-to-person transfers could remain outside the framework. The NPCI-led committee has yet to decide the MDR structure. ## Coverage - aajtak.in - thehindubusinessline.com - telanganatoday.com Tags: digital payments, MDR, Nirmala Sitharaman, NPCI, UPI Canonical: https://indianopinion.org/sitharaman-says-proposed-upi-mdr-would-be-paid-by-merchants/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/sitharaman-says-proposed-upi-mdr-would-be-paid-by-merchants/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.