UPI Merchant Discount Rate Applies Only to Merchants, Not Consumers, Says Treasury

Addressing the media on Thursday, Finance Minister Nirmala Sitharaman reiterated that the MDR is a charge meant for merchants that use the UPI platform, and it does not translate into a fee for the final user. The minister said this distinction is crucial for preserving the affordability of digital payments while ensuring that banks and fintech firms have the financial incentive to upgrade security and infrastructure.