'Everything on record': Parliamentary Finance panel chief defends unanimous Standing Committee report amid UPI MDR row
Bhartruhari Mahtab defended the finance committee's report on Demands for Grants. Congress MP Manish Tewari rejected claims of opposition support for MDR proposals. The committee's report explored a possible revenue model for digital payments. The government is currently exploring options for restoring MDR on certain transactions. New UPI MDR framework for merchant transactions will take effect…
New Delhi, India - The chairman of the Parliamentary Standing Committee on Finance and BJP MP Bhartruhari Mahtab defended the committee's unanimous report on Demands for Grants amid controversy over Merchant Discount Rate (MDR) recommendations. Mahtab stated that the committee follows a structured process of discussion, preparation, and adoption of reports.
The committee examined the possible revenue model for the Department of Financial Services' Demands for Grants, aiming to democratize digital payments in untapped Tier 3-6 cities. However, Congress MP Manish Tewari refuted claims that Opposition members supported the MDR proposal. Tewari emphasized that the committee's recommendation was to explore a self-reliant, tiered revenue model while examining the feasibility of restoring MDR for certain high threshold transactions and merchants.
The new UPI MDR framework, introduced by the National Payments Corporation of India (NPCI) on September 15, will apply to Merchant-to-Consumer (M2C) UPI transactions above Rs 2,000 with an MDR of 0.4% and a cap of Rs 300 per transaction, effective October 15, 2026.
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