IIT Bombay Report Urges Caution on UPI Merchant Fees
· Business · Economic Times, Times of India
A report from IIT Bombay titled 'UPI at a Crossroads: Reintroducing the MDR' warns that implementing a merchant discount rate (MDR) for UPI transactions could damage public trust. The study suggests that long-term economic benefits from the digital infrastructure outweigh the potential income from merchant fees. It proposes that any charges should be restricted to merchants with an annual turnover exceeding ₹50 crore. The report notes that such a targeted approach would cover approximately 90 per cent of the proposed MDR revenue while protecting smaller users.
Why it matters
Changes to the UPI fee structure could impact the adoption of digital payments among small merchants and everyday users across India.
Read the original report — Economic Times
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