Large Merchants May Have To Pay MDR On UPI Transactions Above Rs 2,000

India's government is considering reintroducing a merchant discount rate (MDR) of up to 0.5% on UPI transactions above Rs 2,000 for large merchants, while exempting businesses with annual turnover below Rs 1.5 crore. The move aims to help banks and payment service providers recover infrastructure costs, with a decision expected within a month. If you process high-value UPI payments for large merchants in India, your cost of acquisition just went up by 0.5% per transaction - and your customers will now be choosing between absorbing the cost or raising prices. You have one month to model the impact and decide whether to absorb, pass through, or route around it.