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India to Examine Exempting Select UPI Transactions from MDR Charges
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CNBC TV18•24-09-2026, 13:55
India to Examine Exempting Select UPI Transactions from MDR Charges
- •The Indian government is considering demands to exempt certain UPI transactions from Merchant Discount Rate (MDR) charges.
- •The Department of Financial Services (DFS) will review representations, including a request to exempt petrol pumps from MDR.
- •The Petrol Pump Dealers Association sought the exemption, with the Petroleum Ministry forwarding their request to the Finance Ministry.
- •This development follows a decision to levy a 0.4% MDR on UPI transactions exceeding ₹2,000, with a cap of ₹300, effective October 15.
Key Questions Answered
Under the proposed structure, a 0.4% MDR would apply to UPI transactions above ₹2,000, subject to a cap of ₹300 per transaction, alongside a proposed flat ₹5 charge for such transactions.
The Department of Financial Services (DFS) is likely to examine the representation regarding the exemption of petrol pumps from MDR charges.
The Petroleum Ministry forwarded the Petrol Pump Dealers Association’s representation to the Finance Ministry for consideration.
