The Ministry of Finance confirmed that it has deferred any proposal to implement a Merchant Discount Rate on Unified Payments Interface transactions until at least 2027. Rebuffing banking industry petitions seeking commercial fee structures on retail digital payments, government officials clarified that the existing zero-charge regime will remain fully intact to preserve financial inclusion.
Senior finance officials underscored that digital payment adoption across small merchants and street vendors has transformed the informal economy into formal banking channels. To offset payment system operator costs and infrastructure investments made by participating banks, the central government will continue providing targeted budgetary subsidies for the current fiscal cycle.
Retail merchant associations and consumer advocacy groups expressed relief at the postponement, noting that introducing merchant levy fees would have prompted shopkeepers to revert to cash settlements. Payment aggregators acknowledged the policy certainty, indicating that long-term business models will focus on delivering value-added lending and accounting software rather than transaction surcharge fees.
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Sources:
https://enewsinsight.com/tni-evening-news-headlines-october-8-2026/