Government may bring back UPI MDR for large merchants: Who could be a…

India's government is considering reintroducing Merchant Discount Rate (MDR) fees on UPI transactions for large merchants, reversing a zero-MDR policy that has been in place. This regulatory shift would directly impact fintech payment platforms, aggregators, and large retailers who currently process UPI payments at zero cost. If you built a payments business on zero UPI MDR, your unit economics just broke. Large merchants will start paying fees again—you either absorb the cost and collapse your margin, or pass it on and watch your transaction volume drop to competitors who don't.