π³ Govt says banks won't let UPI merchants hike prices
Government sources clarified that banks will monitor merchants to prevent them from passing Merchant Discount Rate charges onto consumers. This is happening in New Delhi, with the Indian Banksβ Association (IBA) expected to create a monitoring mechanism. The new MDR framework starts from October 15, 2026, with transactions above Rs 2,000 attracting a 0.4% charge. The Finance Ministry will discuss these MDR concerns with the IBA, merchants, and the Confederation of All India Traders (CAIT). The GST Council is also anticipated to review the 18 per cent GST on merchant fees.