Now Reading: Sitharaman says proposed UPI MDR would be paid by merchants
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Sitharaman says proposed UPI MDR would be paid by merchants
Finance Minister Nirmala Sitharaman said any Merchant Discount Rate on UPI payments would apply to merchants, not customers. Her statement followed Congress leader Jairam Ramesh’s claim that the government was opening the…
The Story in Brief
Finance Minister Nirmala Sitharaman said any Merchant Discount Rate on UPI payments would apply to merchants, not customers. Her statement followed Congress leader Jairam Ramesh’s claim that the government was opening the way for charges on all UPI transactions. Sitharaman called that claim misinformation and said MDR could help banks and fintech firms invest in infrastructure, innovation and security.
The Payment and Settlement Systems (Amendment) Bill, 2027 proposes enabling such a charge on UPI transactions above Rs 2,000, according to Aaj Tak. Sitharaman also said the NPCI-led committee has taken no final decision. Business Today, citing government sources, reported that discussions focus on large merchants, while small businesses, low-value payments and person-to-person transfers may remain outside the plan.
The Indian Opinion
Claims that every UPI user will soon pay a fee are ahead of the facts, but so is presenting MDR as harmless. A charge on large merchants could still affect prices if businesses pass it on, while banks and payment firms do need a sustainable revenue model. The real test is the final NPCI framework: which merchants qualify, and whether customers see any extra charge.
Source: aajtak.in
This story was synthesised by AI from the source linked above.
