The Reserve Bank of India (RBI) has endorsed the introduction of Merchant Discount Rate (MDR) on large-value UPI transactions to enhance the sustainability of India's digital payments ecosystem.
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Key takeaway
RBI supports introducing MDR on large-value UPI transactions to ensure payment ecosystem sustainability.
- Step 1 · The triggerRBI endorses MDR on large-value UPI transactions, allowing banks and payment providers to levy a fee.
- Step 2 · Knock-onBanks and payment service providers gain a new revenue stream, supporting investment in UPI infrastructure and technology.
- Step 3 · Reaches youSMEs accepting large-value UPI payments face new transaction costs, affecting net receipts and possibly pricing strategies.
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: Economic Times Top Stories
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