No MDR on UPI: Government Doubling Down on Digital Payments

On June 12, 2025, India’s Finance Ministry officially confirmed that no Merchant Discount Rate (MDR) will be imposed on Unified Payments Interface (UPI) transactions. This clarification comes after weeks of speculation that banks and fintech firms were lobbying to revive MDR fees—widely perceived as a catalyst for monetizing UPI. Here’s what this means for merchants, consumers, and…

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