Shivakumar Calls for Nationwide Fight Against 0.4% UPI MDR

Karnataka Chief Minister D K Shivakumar on Wednesday called for a countrywide campaign against the Centre's decision to impose a 0.4 per cent Merchant Discount Rate (MDR) on certain UPI transactions above ₹2,000, saying the issue concerns the entire nation.

Asked whether the Congress would launch a protest against the proposed MDR, Shivakumar said the matter was not confined to the party and affected people across the country.

“This is the nation's problem. The entire nation will have to fight for this. The Congress is the opposition party and will fight to protect the interests of the common people,” he told reporters.

Under the new UPI framework, a 0.4 per cent MDR will apply from October 15 to eligible person-to-merchant transactions above ₹2,000. The charge will be borne by merchants rather than consumers.

The MDR will also be capped at ₹300 for transactions of ₹75,000 or more, according to the framework.

Person-to-person UPI transfers will continue to remain free, while merchant transactions of up to ₹2,000 will also not attract the charge.

MDR is a fee associated with processing digital payments and is generally paid by merchants to payment service providers and other entities involved in facilitating transactions.

The proposed charge comes amid the rapid expansion of UPI as a major digital payments platform in India. The government and payment ecosystem have in recent years sought to expand digital payments while addressing the costs involved in processing transactions.

Shivakumar's remarks come as the Congress has raised concerns over the proposed MDR and its possible impact on merchants and the wider digital payments ecosystem.

The Karnataka chief minister said the Congress would take up the issue as the opposition party, while emphasising that the matter should be viewed as one affecting the interests of common people and businesses nationwide.