Exclusive: Major shift in UPI as Govt may allow MDR for large merchants

In a major shift for UPI, the government may allow MDR (Merchant Discount Rate) for large merchants. This move, currently under consideration, could introduce charges for UPI transactions made by large businesses, potentially impacting transaction costs for both merchants and consumers. While UPI has largely been free for users and merchants, introducing MDR for large transactions could incentivize banks and payment service providers to further invest in the UPI infrastructure. This policy change aims to ensure the sustainability of the UPI ecosystem while encouraging digital payments.