UPI’s new MDR pot gets a small merchants twist
The National Payments Corporation of India (NPCI) proposed a fund financed by Merchant Discount Rate (MDR) collections to enhance digital payments among small merchants. Starting October 15, a 0.4% MDR will apply to select UPI transactions above ₹2,000, with 5% of collections allocated to support merchant onboarding and infrastructure in smaller cities. NPCI aims to finalize the framework within three months.