MDR fee on UPI coming; call on threshold soon
AFTER MONTHS OF dithering the government may allow banks to levy merchant discount rate (MDR) charges on UPI transactions beyond a threshold. The move fol-lows the realisation that banks and and payment service providers need to to be compensated for their operational costs and investments in technology to ensure a secure payment infrastructure.
Various options are being looked at, and a transactio threshold would need to be fixed. above which the charges could could apply, sources told FE. Currently, a threshold anywhere in a rather wide range of 2,000-5,000 is being considered, with the notion of exempting small-ticket transac tions by common people , the sources added.
Satinder Duggal
