MDR on large-value UPI transactions to strengthen long-term sustainability: RBI

The introduction of 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, the Reserve Bank of India said on Tuesday.

The statement follows a proposal to levy a 0.4% fee on transactions exceeding ₹2,000.”It will help UPI in continuing to scale, innovate and serve consumers and businesses across the country,” the RBI said in a post on X.

The central bank added that a fair and appropriate distribution of MDR across ecosystem participants will support continued investment in technology, infrastructure and acceptance networks.