Proposed MDR for UPI Transactions Will Be Nominal, Says Government The government's announcement on Saturday regarding the proposed merchant discount rate (MDR) for Unified Payments Interface (UPI) transactions has sparked a mix of relief and skepticism.
The claim that the MDR will be nominal and apply only to a limited set of merchants for transactions above a certain threshold is an attempt to assuage concerns, but it does not fully address the implications.
The decision to introduce MDR comes as no surprise given the growing pressure from international players like Visa and Mastercard. These companies have long levied hefty fees on credit card and debit card transactions.