Finance Ministry artwork external pressure behind way MDR charges
· Business · Indian Express
The Finance Ministry dismissed claims that the decision to impose a 0.4% Merchant Discount Rate (MDR) on certain UPI transactions was influenced by foreign powers. This clarification follows allegations from the Congress party that the government surrendered to demands from the United States to benefit credit card companies. The ministry emphasised thatization remains free for consumers, with person-to-person transfers unaffected by the levy. Small merchants earning up to ₹1 lakh per month through UPI QR codes are exempt from the fee. The new charges will apply only to merchant transactions exceeding ₹2,000 and will be borne by the vendors.
Why it matters
The move addresses political friction over the sustainability of India's digital payment ecosystem and clarifies the cost structure for small-scale vendors and consumers.
Read the original report — Indian Express
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