Byjus 1

Byjus  2

| **Topic**               | **Details** |
|-------------------------|------------|
| **Proposed Amendment**  | Changes to the **Payment and Settlement Systems Act, 2007** to reintroduce **Merchant Discount Rate (MDR)** on select **digital transactions**, including **UPI transfers**. |
| **Objective**           | Ensure long-term **sustainability of digital payments infrastructure**. |
| **Key Change**          | Removal of **zero-MDR mandate** for specified transactions. |
| **Legislation Route**   | Proposed via **Taxation and Other Laws (Amendment) Act, 2026** (expected introduction in Parliament in August 2026). |

Topic	Details
Proposed Amendment	Changes to the Payment and Settlement Systems Act, 2007 to reintroduce Merchant Discount Rate (MDR) on select digital transactions, including UPI transfers.
Objective	Ensure long-term sustainability of digital payments infrastructure.
Key Change	Removal of zero-MDR mandate for specified transactions.
Legislation Route	Proposed via Taxation and Other Laws (Amendment) Act, 2026 (expected introduction in Parliament in August 2026).

Ministry of Finance Proposes MDR Reintroduction on UPI Transactions