'No rethink': Govt firm on UPI merchant fee amid rollback demands

NEW DELHI: Govt on Wednesday said there would be no rethink on the 0.4% merchant discount rate (MDR) on person-to-merchant UPI transactions, amid demands to withdraw the fee from small retailers, petroleum dealers and brokers, who argued that their margins would be affected.A senior govt official said MDR was introduced in the larger interest of the UPI ecosystem and to strengthen its safety and security. "There is no rethink on this," the official said, adding that the decision was taken when the UPI system was introduced in 2020 and that the new framework will make it self-sustainable.Communications minister Jyotiraditya Scindia clarified that the charge will not be imposed on customers. "Under the rules that have been introduced, no merchant can pass this charge on to any customer. If they do so, it will be outside the legal framework."