Now Reading: GTRI urges India not to impose MDR on UPI despite US pressure
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GTRI urges India not to impose MDR on UPI despite US pressure
The Global Trade Research Initiative (GTRI) has advised India not to bow to external pressure and impose Merchant Discount Rate (MDR) on UPI and RuPay transactions. The economic think tank said these…
The Story in Brief
The Global Trade Research Initiative (GTRI) has advised India not to bow to external pressure and impose Merchant Discount Rate (MDR) on UPI and RuPay transactions. The economic think tank said these homegrown payment systems have transformed digital payments in the country, and altering their zero-MDR structure to favour foreign companies would be wrong. The statement comes as the Lok Sabha passed a bill amending the Payment and Settlement Systems Act 2007, giving the government powers to decide which payment modes attract fees.
GTRI pointed to the US Trade Representative's 2026 National Trade Estimate Report, which criticises India's UPI and RuPay frameworks along with Brazil's Pix for allegedly not giving a level playing field to foreign payment firms. The think tank noted that US-owned Google Pay and PhonePe already process more than 80% of UPI transactions. GTRI founder Ajay Srivastava said any fee decision must be based on actual system costs, not foreign complaints.
The Indian Opinion
The US trade complaints about UPI and RuPay sound like a large predator calling the jungle unfair. Google Pay and PhonePe already handle 80% of UPI transactions, so much for market access. The real question is who pays for security and fraud prevention if nearly all transactions remain free. A targeted levy on big merchants, not a blanket MDR, seems sensible. India must not let trade talks decide its digital inclusion policy, but it must also explain how the system stays sustainable without endless budget support.
Source: aajtak.in
This story was synthesised by AI from the source linked above.
