FM says MDR on UPI applies to merchants, not customers; fintechs, banks will invest more on security
- Posted on August 6, 2026
- By Business News Today
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FM says MDR on UPI applies to merchants, not customers; fintechs, banks will invest more on security
Finance Minister Nirmala Sitharaman stated Merchant Discount Rate applies to merchants, not customers. This charge will support banks and fintech companies in infrastructure investment. A committee will decide on MDR after Parliament passes a taxation bill. The bill provides legal backing to modify the zero-MDR framework for digital payments. This move aims to ensure UPI and RuPay card transactions remain financially sustainable.
