Who has to pay MDR on UPI and who stands to gain the most? | Explained
India’s new UPI merchant discount rate (MDR) framework will levy a fee on certain digital transactions. Banks and payment service providers will collect the charge, while small-value peer‑to‑peer transfers and person‑to‑merchant payments below a set limit remain free. The scheme is expected to generate revenue for banks and fintech platforms, with larger merchants bearing most of the cost.