UPI New Rules: MDR & Charges Quiz
Test your understanding of the October 15 UPI MDR changes, who pays, exemptions, caps, and policy rationale based on the provided briefing.
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Quiz Questions & Answers
Review every prompt, the correct responses, and helpful context to prep for your own run-through.
Question 1: What does MDR stand for and who ultimately bears it under the new UPI rules?
Mobile Data Rate; paid by customers for app updates.
Minimum Direct Remittance; split equally by bank and consumer.
Mandatory Deposit Requirement; paid by banks only.
Merchant Discount Rate; paid by eligible merchants, not consumers.
Question 2: Which UPI transactions remain free of MDR for both customers and merchants?
Peer-to-peer transfers between friends and family.
High-value corporate vendor payments over 75,000 rupees.
Bill payments for electricity and fuel without fees.
All in-store merchant purchases regardless of value.
Question 3: At what transaction value does the 0.4% MDR start applying to merchant transactions?
Only transactions above 75,000 rupees.
There is no value threshold; all merchant payments incur 0.4%.
Any value above 100 rupees.
Above 2,000 rupees for selected commercial payments.
Question 4: What is the maximum MDR a merchant will pay for a single very large UPI transaction?
No cap; the 0.4% applies unlimitedly.
A cap equal to 0.9% of the transaction value.
A cap of 300 rupees per transaction.
A cap of 5,000 rupees per transaction.
Question 5: How are small local merchants with monthly earnings under 100,000 rupees treated under the new MDR rules?
They must register for a government rebate to avoid MDR.
They pay a fixed 300 rupee fee monthly.
They must pay 0.4% on every transaction regardless of size.
They are exempt from MDR if they qualify under the small-merchant criteria.
Question 6: Which category of payments has a fixed merchant fee of 5 rupees per transaction?
Recurring automated UPI payments.
All person-to-person transfers regardless of amount.
Every e-commerce purchase under 2,000 rupees.
Selected bills like electricity and fuel transactions above 2,000 rupees.
Question 7: What main reason did the government give for introducing MDR on selected UPI merchant payments?
To increase tax collection from small merchants directly.
To reduce the number of UPI transactions in favor of cash.
To make UPI financially sustainable by funding infrastructure, security, and fraud prevention.
To equalize fees with credit card charges by matching 1.5–2.5% rates.