Merchant Discount Rate (MDR)

The Union Government announced a new Merchant Discount Rate (MDR) framework for UPI, effective from October 15, 2026, introducing charges on specified merchant payments above ₹2,000.

  • Merchant Discount Rate (MDR) is a fee charged within the merchant payment ecosystem for processing digital transactions.
  • Under the new UPI framework, MDR applies to certain Person-to-Merchant (P2M) transactions and is shared among banks, payment service providers and UPI app providers.
  • It is not a tax or government levy, and customers are not required to pay it.
  • The framework has been introduced under the Payment and Settlement Systems Act, ....
Do You Want to Read More?
Subscribe Now
To get access to detailed content
Buy November 2026 Issue

Already a Member? Login here

Take Annual Subscription and get the following Advantage
The annual members of the Civil Services Chronicle can read the monthly content of the magazine as well as the Chronicle magazine archives.
Readers can study all the material before the last six months of the Civil Services Chronicle monthly issue in the form of Chronicle magazine archives.
Be an Annual Subscriber

Related Content