With legislative changes introduced in Parliament, the Centre may reintroduce a merchant discount rate (MDR) of 0.25-0.35% on UPI transactions over Rs 2,000 for large merchants to compensate banks and payment service providers for rising operational costs and technology investments, sources said, citing ongoing deliberations. However, merchants and businesses with an annual turnover up to Rs 1.5 crore are likely to be exempt from the levy, irrespective of the transaction amount. MDR is a fee paid by businesses to payment processors for accepting digital payments.