YS Sharmila Reddy Demands Withdrawal of Proposed 0.4% UPI MDR

Andhra Pradesh Congress Committee (APCC) Chief YS Sharmila Reddy has raised objections to the proposed 0.4% Merchant Discount Rate (MDR) on select UPI transactions above ₹2,000. In a statement, she argued that the additional transaction cost could affect poor and marginalised sections, middle-class households and small traders. She called on the government to withdraw the proposed MDR.

The new UPI framework announced by the National Payments Corporation of India (NPCI) is scheduled to take effect from October 15, 2026. A 0.4% MDR will apply to specified person-to-merchant transactions above ₹2,000, with the charge capped at ₹300 for transactions of ₹75,000 or more. The government has clarified that customers will not directly pay the MDR and that person-to-person UPI transfers will remain free.