India reverses UPI MDR policy amid US pressure

India's government has passed amendments to enable Merchant Discount Rate (MDR) fees on UPI and RuPay debit card transactions, reversing a 2020 policy that eliminated such charges. The move comes amid US pressure for fair payment rules, with the US Trade Representative criticizing India's framework as favoring domestic firms. Analysts warn of trade risks, noting the US recently imposed tariffs on Brazil over similar payment policies.