Proposed MDR range: 0.25% to 0.5% on UPI transactions above ₹2,000
GK and monthly revision
UPI and the cost of policy reversal
The government proposes reintroducing Merchant Discount Rate (MDR) of 0.25–0.5% on UPI transactions above ₹2,000, reversing the zero-MDR policy in place since 2019. This move could disincentivize banks and fintechs from investing in UPI infrastructure, potentially undermining financial inclusion and digital payment adoption. The policy shift marks a significant departure from the decade-long approach that fueled UPI's exponential growth to over 10 billion monthly transactions.
Source: The Hindu. This summary and analysis are AI-written from that report and are not individually fact-checked — confirm names, dates and figures with the source before you rely on them.
Revision structure
Monthly events and exam calendar context
Static GK and one-liner notes
Quiz and mock-test revision path
Key points
Exam-ready takeaways
Reverses zero-MDR policy implemented in January 2019 for UPI and RuPay
UPI processed over 10 billion monthly transactions as of 2024
MDR reintroduction may reduce incentives for banks/fintechs to maintain UPI infrastructure
Policy shift could impact financial inclusion and digital formalisation goals
How to study
Turn news into exam marks
Revise monthly events by exam family instead of reading random updates.
Pair one-liners with mock tests so mistakes become the next revision list.
Note which exams each story matters for, and revise it again in the week before that exam.