The government is in discussions with payment aggregators and merchant-facing platforms to ensure that the new Merchant Discount Rate (MDR) on larger UPI transactions is not passed on to consumers, The Times of India reported, citing finance ministry officials.
The consultations come ahead of the introduction of a 0.4% MDR on UPI merchant transactions above Rs 2,000 from October 15. The government has maintained that merchants, rather than consumers, should bear the charge and does not expect the move to slow UPI usage or trigger a shift towards cash payments, according to the TOI report.
