FM says MDR on UPI applies to merchants, not customers; fintechs, banks will invest more on security - The Economic Times
Finance Minister Nirmala Sitharaman stated Merchant Discount Rate applies to merchants, not customers. This charge will support banks and fintech companies in infrastructure investment. A committee will decide on MDR after Parliament passes a taxation bill. The bill provides legal backing to modify the zero-MDR framework for digital payments. This move aims to ensure UPI and RuPay card transactions remain financially sustainable.