BM Finance Fundas: Government considers MDR return for large retailers

India's government is considering reintroducing a 5–7 basis point Merchant Discount Rate (MDR) on UPI transactions for large retailers (those with >Rs 1–1.5 crore annual turnover), potentially generating Rs 3,500–5,000 crore annually for banks and fintech companies whilst keeping small merchants and peer-to-peer transfers free.

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