Now Reading: Parliamentary panel proposes MDR on high-value UPI payments
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Parliamentary panel proposes MDR on high-value UPI payments
A parliamentary panel has recommended that a Merchant Discount Rate (MDR) be charged on high-value UPI transactions to cover the cost of operating the digital payments infrastructure. NDTV Profit reports that the…
The Story in Brief
A parliamentary panel has recommended that a Merchant Discount Rate (MDR) be charged on high-value UPI transactions to cover the cost of operating the digital payments infrastructure. NDTV Profit reports that the committee found the gap between government support and the actual cost "threatens the long-term sustainability" of the ecosystem. The panel has not specified the threshold for high-value transactions or the rate of MDR, leaving those details to the government and the Reserve Bank of India.
The Indian Opinion
The demand for free UPI is popular but ignores the cost of running the system. Taxpayers should not forever subsidise high-value transactions, while the digital payments industry cannot sustain zero revenue forever. The real test will be the threshold the government sets for the MDR, too low will hurt small merchants, too high may push users back to cash. Watch the fine print.
Source: ndtvprofit.com
This story was synthesised by AI from the source linked above.
