Q5 · UPSC current affairs · 20 September 2026 · News · Merchant Discount Rate UPI Transactions

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Consider the following statements regarding Merchant Discount Rate (MDR) on UPI transactions:1.MDR is payable by the merchant accepting payments and is not deducted from the consumer's account.2.Person-to-person UPI transfers remain completely zero-rated under current guidelines.Which of the statements given above is/are correct?

A 1 only
B 2 only
C Both 1 and 2
D Neither 1 nor 2

Correct answer: (c) Both 1 and 2

Explanation

Both statements are correct. MDR is paid by the merchant accepting payments rather than being deducted from the consumer, and person-to-person UPI transfers remain completely zero-rated under current guidelines.

Same topic · past papers

UPSC has asked this before

These previous-year questions sit on the same topic. Open one to practise the earlier ask.

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  5. 2022 · Q69 · General Studies · 2 marks

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