'No burden for consumers': Sitharaman clarifies who will pay MDR on UPI transactions

Union finance minister Nirmala Sitharaman has backed the recently announced Merchant Discount Rate (MDR), saying that the mechanism will be imposed on operators and will not be passed on to customers. Addressing ongoing speculations around the charges, FM blamed the opposition for creating confusion and urged people to remain alert.Speaking to ANI, the finance minister said that she had already addressed the issue in Parliament, stressing that MDR is a charge between payment operators and will not be 'burdened' on UPI users.Sitharaman stressed that MDR is neither a tax nor a cess and that the money collected through it will not go into the Consolidated Fund of India.”It does not apply to transactions below Rs 2,000. It is neither a tax nor a cess; the funds will not be deposited into the Consolidated Fund of India.