Now Reading: Sitharaman Says UPI MDR Would Apply To Merchants, Not Customers
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Sitharaman Says UPI MDR Would Apply To Merchants, Not Customers
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…
The Story in Brief
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.
The Indian Opinion
The loudest claims point in opposite directions: one says every UPI user will soon pay, while the other treats any merchant charge as harmless. Neither is settled. A merchant levy can still affect prices or small businesses indirectly, even if customers face no checkout fee. The government must publish the exempt payment modes, merchant threshold and rate before claiming protection for users. The eventual notification, not political posts, will settle who pays and how much.
Sources (3): aajtak.in, thehindubusinessline.com, telanganatoday.com
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
