Now Reading: Parliament panel seeks calibrated MDR on high-value digital payments
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Parliament panel seeks calibrated MDR on high-value digital payments
A parliamentary panel has recommended an expeditious introduction of a calibrated merchant discount rate (MDR) on high-value digital transactions. The committee urged the Department of Financial Services (DFS) to create a self-reliant,…
The Story in Brief
A parliamentary panel has recommended an expeditious introduction of a calibrated merchant discount rate (MDR) on high-value digital transactions. The committee urged the Department of Financial Services (DFS) to create a self-reliant, tiered revenue mechanism for digital payment systems so they no longer depend permanently on government subsidies.
The panel, in its report, stressed financial sustainability for payment infrastructure without straining the exchequer. The DFS has been asked to explore a graduated MDR model. The recommendation comes as India pushes digital payments while keeping UPI free for users. The exact threshold for 'high-value' transactions has not been disclosed.
The Indian Opinion
Is ‘calibrated’ a cover for a fresh tax on digital payments? The panel’s report, backed by the finance ministry, avoids mentioning what this MDR will cost consumers or small merchants. For years, UPI was hailed as free. Now the narrative shifts to ‘sustainability’ without explaining why the exchequer must be shielded while users bear the cost. Until the DFS tables a clear MDR slab, suspicion will remain that this is a stealth fee on convenience.
Source: deccanherald.com
This story was synthesised by AI from the source linked above.
