'No question of rethinking 0.4% UPI MDR above ₹2,000': Govt official

The government has said the MDR will apply within the merchant payment ecosystem and will not be charged to consumers

The government has ruled out any revision of the 0.4 per cent Merchant Discount Rate (MDR) levied on UPI transactions above ₹2,000, PTI reported on Wednesday. The new charges are set to take effect from October 15.

A top government official, when asked whether the proposed MDR would be withdrawn, said a decision had already been taken and there was “no question of reversing it”, PTI reported.

According to PTI, sources said the decision was taken in the broader interest of the UPI ecosystem and to strengthen its safety and security. “The new MDR framework would make UPI financially self-sustainable,” government officials said.

Individuals will continue to have unlimited free UPI usage, without monthly quotas, volume restrictions or tiered caps on free transactions, the government said on Tuesday.