This is not a tax, cess, surcharge...: FM Sitharaman explains what the new UPI MDR really means
A taxation development with market-wide reach.
25 Sept 2026 · Business Today Mkts
FM Nirmala Sitharaman has clarified that the new Merchant Discount Rate (MDR) on specified UPI payments is a charge within the digital payments ecosystem, not a government levy. Speaking to PTI, she said merchants will bear the charge, while customers will not be separately billed for the MDR.
The analysis
This is a Tax / tariff / duty event. Duty and incentive changes reset landed cost and competitive position immediately, and unlike demand shifts they arrive on a known date.
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