Finance Minister Nirmala Sitharaman rejected Congress leader Jairam Ramesh's criticism of the UPI amendment Bill, saying Merchant Discount Rate applies only to merchants. She accused the Congress of avoiding parliamentary debate, while Ramesh maintained the changes could eventually lead to charges on digital payments.
The Lok Sabha has passed a Bill amending the Payment and Settlement Systems Act, enabling the government to permit Merchant Discount Rate (MDR) on UPI and other notified digital payment modes. The amendment seeks to create a sustainable revenue model for payment service providers
Merchant Discount Rate is the cost paid by a merchant to a bank for accepting payment from their customers via digital means. Finance Ministry’s clarification comes following reports that the government is planning to impose MDR on large-ticket UPI transactions
