Finance Minister Nirmala Sitharaman has sought to allay concerns around the proposed MDR on UPI tran

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.