FM Sitharaman UPI MDR Charge Goes To Banks Not Government
· Business · Times of India, The Hindu, Economic Times
Finance Minister Nirmala Sitharaman clarified that the UPI Merchant Discount Rate (MDR) charge is not a government decision, stating the government and banks will determine the subsidy amount for UPI post-MDR implementation. She addressed concerns about the charge's impact on digital transactions, emphasizing that the mechanism will continue to evolve based on stakeholder decisions. The remarks came amid ongoing debate about the sustainability of UPI subsidies once the MDR structure is fully operational. Her statement aims to set expectations for merchants and consumers regarding future transaction costs.
Why it matters
Merchants and consumers using UPI will need to adjust to potential changes in transaction costs as the government and banks finalize subsidy amounts after the MDR charge is introduced, directly affecting the affordability of digital payments.
Read the original report — Times of India
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