‘We fail to appreciate what we get for free’: Omar Abdullah Supports UPI MDR Charges

September 17, 2026

Jammu and Kashmir: Chief Minister Omar Abdullah has backed the Centre’s decision to introduce Merchant Discount Rate (MDR) charges on certain high-value UPI transactions, saying that maintaining and operating the digital payment infrastructure comes at a cost.

Omar Abdullah Supports Charges on High-Value UPI Payments

Speaking to reporters in Srinagar, Abdullah said the proposed charge would not apply to everyone. He noted that person-to-person UPI transfers will remain free, while individual consumers will not be charged unless they cross the specified limit.

Under the new framework, a 0.4% MDR will apply to UPI payments above ₹2,000 made to merchants, with the changes scheduled to take effect from October 15.

‘Running UPI System Is Not Cheap’

Abdullah said maintaining the country’s digital payment infrastructure requires significant investment.

He also said people often fail to appreciate the cost of services that are provided for free. However, he stressed that the government should ensure ordinary consumers are not burdened by the new charges.

No Objection If Companies Pay the Charges

The J&K chief minister said he would have no objection if companies are charged, arguing that businesses benefit significantly from UPI transactions.

His comments come amid a wider debate over the new MDR framework, with opposition parties and some industry groups raising concerns about its possible impact on businesses and consumers.

What the New UPI MDR Means

The new framework sets the MDR at 0.4% for merchant UPI transactions above ₹2,000, with the charge capped at ₹300 per transaction. Payments up to ₹2,000 and person-to-person transactions remain outside the charge framework.