Wire · operational-macro
MDR in future only on limited merchant transactions above a threshold: FM
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Fusion42 · 24 August 2026 · Fusion42 review
India's upcoming amendment to the Payment and Settlement Systems Act will allow a merchant discount rate (MDR) only on limited merchant transactions above a high threshold, exempting most consumers and small merchants from UPI transaction charges. The government also proposes tax exemptions to encourage foreign companies to supply components to contract manufacturers in India, aiming to boost electronics manufacturing.
This Wire brief sits within Fusion42's coverage of Fintech, and 2 sources have reported it between 4 Aug 2026 and 10 Aug 2026.
◆ ◆ The Wire takeaway
You can expect UPI transactions from small merchants to stay free, opening a broader market for affordable digital payments. If you supply or enable contract manufacturing in electronics, new tax rules create timely inventory opportunities in India.
◆ Coverage
2 sources · first reported 4 Aug 2026 · latest 10 Aug 2026
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