Show Quick Read Key points generated by AI, verified by newsroom Center considers MDR on UPI payments exceeding Rs 2,000. This merchant discount rate targets business transactions only. The Centre is considering allowing banks and payment service providers to levy a merchant discount rate (MDR) of 0.25% to 0.4% on UPI payments exceeding Rs 2,000 made to businesses, while keeping person-to-person transactions outside the proposed framework. "Even if implemented, 95% of the transactions will not face the merchant discount rate. The proposed MDR would apply only to payments made to merchants, with transfers between individuals continuing to remain free.