India, June 11 -- In an effort to boost operations of banks and payment service providers across India,the government is reportedly considering levying a merchant discount rate (MDR) on unified payments interface (UPI) transactions above INR 3,000.

An NDTV Profit report said that discussions are underway to impose MDR on the basis of transaction value instead of merchant turnover.

The report further added that a key meeting was held last week involving the Prime Minister's Office, department of economic affairs and department of financial services to revisit the MDR framework.

"While small-ticket UPI payments would likely remain exempt, larger transactions could soon carry a merchant fee, reversing the zero-MDR policy in place since Ja...