UPI MDR is neither tax nor cess, says Sitharaman

Finance Minister Nirmala Sitharaman rejected opposition claims that the merchant discount rate (MDR) on UPI transactions constitutes a tax or cess. She stated that MDR is a charge levied by service providers to improve the system and deliver better service quality.

Sitharaman accused the opposition of misrepresenting the issue to spread misinformation among the public. The MDR framework has been a subject of political debate, with critics arguing it could impact small merchants and digital payment adoption.