Centre to ask banks' body to ensure consumers don't pay MDR on UPI payments
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Key takeaway
The Indian government will prevent banks and payment providers from passing new UPI merchant discount rate (MDR) charges to consumers.
- Step 1 · The triggerThe government mandates that MDR on UPI transactions cannot be passed to consumers for low-value payments and small merchants.
- Step 2 · Knock-onBanks and payment providers must absorb the MDR cost, compressing their margins and potentially prompting them to adjust other fees or terms for SMEs.
- Step 3 · Reaches youSMEs accepting UPI payments below the threshold maintain zero-cost digital payments for customers, but may face indirect cost pressures from providers.
The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.
Source: livemint.com
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