No decision has been taken on introducing a merchant discount rate (MDR) for UPI transactions, Reserve Bank of India Governor Sanjay Malhotra said. He indicated that a detailed discussion on UPI transaction charges would be premature at this stage.
The payment system’s future structure and the costs associated with processing transactions remain under discussion. The comments suggest that the authorities have not yet settled how any potential charges would operate or affect participants in the UPI ecosystem.
The government is reportedly considering legal amendments that could enable merchant discount rates on selected UPI transactions. However, the timing, scope and final mechanism for such charges have yet to be determined.
