Will The New UPI Rules Change The Way That India Spends?

The proposed 4% MDR on select UPI merchant transactions above ₹2,000, effective October 15, has sparked debate over the cost and sustainability of digital payments. The framework exempts small merchants and certain essential categories. JSA Partner Yajas Setlur said the model is not legally unprecedented and noted that clarity is needed on its implementation. He added, “If we want to keep UPI as revolutionary as it is and want innovation to continue, we need to also realise that there is going to be a cost to it.”