India moves toward reintroducing merchant fees on high-value UPI payments

India's government is weighing a plan to levy a merchant discount rate (MDR) of 0.3%–0.5% on eligible large merchants for high-value Unified Payments Interface (UPI) transactions. The proposed charge would apply to payments above 2,000 rupees per transaction and merchants with annual turnover exceeding 15 million rupees. If implemented, the move would mark a shift away from UPI's current zero-fee framework. Data show these high-value transactions make up about 4% of UPI volumes but account for roughly 67% of total transaction value. The development reflects domestic regulatory policy in India and does not directly affect traditional financial assets.