Finance Minister Nirmala Sitharaman has sought to allay concerns around the proposed MDR on UPI transactions above ₹2,000, saying the charge will not be passed on to customers.

The minister clarified that the 0.4% MDR is neither a tax nor a cess and will not flow to the government's treasury. Instead, it will be shared among stakeholders in the digital payments ecosystem, including NPCI, banks and service providers.