The(only these)  jewellery is a high-value, low-frequency category and that even a capped MDR adds a recurring cost to digital transactions. The new framework is scheduled from 15 October 2026, with 0.4% MDR on specified P2M UPI transactions above Rs. 2,000 and a Rs. 300 cap for transactions of Rs. 75,000 and above.

“The Gems and Jewellery Council (GJC) is concerned and disappointed with the introduction of MDR on UPI merchant transactions above Rs. 2,000.

UPI has become an integral part of India’s digital payment ecosystem, and the jewellery industry has actively supported this transition towards transparent, traceable and cashless transactions. Introducing an additional cost on high-value UPI payments will increase the transaction burden on jewellers, particularly because jewellery is inherently a high-value purchase category where individual transactions can run into lakhs of rupees.

For a jewellery retailer, even a capped MDR of ₹300 per transaction, when multiplied across a large number of transactions, represents a significant recurring cost. At a time when the industry is already dealing with high gold prices, working-capital requirements and pressure on margins, adding another payment-related cost is a matter of concern.

We fully appreciate the need to maintain a robust, secure and sustainable digital payment infrastructure. However, we believe that the cost of maintaining and strengthening UPI should not disproportionately fall on genuine businesses that have embraced digital payments in the interest of transparency and formalisation.

GJC therefore strongly urges the Government and NPCI to reconsider the applicability of MDR on high-value jewellery transactions and provide a sector-specific exemption or an appropriate relief mechanism for the Gems and Jewellery industry.

India’s jewellery trade has consistently supported the Government’s vision of a transparent and digitally enabled economy. We hope that the Government will also consider the practical realities of the industry and ensure that digital payments remain an enabler of business, rather than becoming an additional cost.