MDR Framework to Support Long-Term Sustainability of UPI Ecosystem: RBI

September 16, 2026 12:49 AM

MDR Framework to Support Long-Term Sustainability of UPI Ecosystem: RBI

The Reserve Bank of India (RBI) on Tuesday said the introduction of a Merchant Discount Rate (MDR) on large-value UPI transactions is an important step towards strengthening the long-term sustainability of India's digital payments ecosystem. In a statement, the central bank said an appropriate distribution of MDR among participants in the payments ecosystem will support continued investment in technology, infrastructure and acceptance networks. The RBI said this would help expand UPI acceptanc...

UPI to remain free for users; nominal MDR may apply to limited merchant transactions

August 9, 2026 5:40 PM

UPI to remain free for users; nominal MDR may apply to limited merchant transactions

The Centre on Saturday clarified that users will not be charged for making payments through the Unified Payments Interface (UPI), amid concerns over the recent amendment to the Payment and Settlement Systems Act (PSS Act). The government said all Person-to-Person (P2P) UPI transactions would continue to remain free, while the vast majority of merchant transactions would also remain charge-free. The government said any Merchant Discount Rate (MDR) introduced in the future would apply only to a ...