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Why is the government considering a fee on UPI?
short by Anmol Sharma / on Friday, 7 August, 2026
The government is considering bringing Merchant Discount Rate (MDR) back on UPI to make payments ecosystem financially sustainable and help banks and fintech firms recover infrastructure costs. Finance Minister Nirmala Sitharaman said MDR would "support banks and fintech to invest more on infrastructure, innovation & security". She clarified it "applies only on merchants and not on end customers."
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