Overview

• The Finance Ministry labelled reports of levying a merchant discount rate on UPI transactions as false, baseless and misleading.
• The zero-MDR policy, in effect since January 2020, will continue alongside ongoing incentives such as the ₹1,500 crore scheme for small-value transactions.
• UPI processed a record 18.68 billion transactions worth ₹25.14 lakh crore in May, underscoring its role in India’s digital payments landscape.
• The Payments Council of India and fintech firms had urged the government to introduce a 0.3% MDR on high-value UPI payments to offset operational costs.
• Shares of Paytm's parent company plunged nearly 10% after the clarification dashed expectations of margin relief from potential merchant fees.