Government can bear cost of maintaining UPI network: BJD MP Santrupt Misra

BJP Jaldi Dal MP Santrupt Misra has criticized the Centre's decision to impose a merchant discount rate (MDR) of 0.4% on person-to-merchant UPI transactions above ₹2,000. Misra argues that the government could easily bear the cost of maintaining the UPI network, citing the Reserve Bank of India's (RBI) recent dividend of ₹2.86 lakh crore to the government.

He also points out that the National Payments Corporation of India (NPCI), which operates UPI, has large financial banks and platforms as its shareholders and promoters, who could contribute a portion of their profits to the digital-transaction infrastructure. The MDR is set to take effect from October 15, and Misra contends that it will force merchants to either reduce their profit margins or pass it on to consumers.

Brief written by urgent.news from The Hindu's own syndicated text. Machine-written — may contain errors; check the original before relying on it.