Rs 15,000 crore revenue: Why govt is backing UPI levy despite backlash
The Indian government plans to introduce a 0.4% Merchant Discount Rate (MDR) on UPI transactions over ₹2,000 starting October 15, aiming to generate ₹15,000 crore in revenue. This charge, which will be shared among banks and payment providers, comes after exempting UPI payments below ₹2,000 from fees. The move reflects ongoing demands from banks for infrastructure cost recovery.