MDR on UPI Applies to Merchants, Not Users: FM

Finance Minister Nirmala Sitharaman stated that the Merchant Discount Rate (MDR) on UPI transactions applies only to merchants and not to end users or customers. Jairam Ramesh of the Congress argued that MDR charges would ultimately affect consumers and small businesses. However, FM Nirmala Sitharaman countered that the revenue generated from MDR would enable banks and fintech companies to invest in infrastructure, innovation, and security.

According to Jairam Ramesh, the bill removes the guarantee of zero MDR.