Banks rethink UPI play; Big Tech's AI pivot dents Indian IT
Happy Wednesday! The return of MDR on UPI is pushing banks to rethink products and budgets. This and more in today’s ETtech Morning Dispatch.
Returning MDR on UPI prompts banks to reassess products and budgets
Banks are reviewing budgets and product plans following the reactivation of the merchant discount rate (MDR) on Unified Payments Interface (UPI) transactions. This could fuel agent-led payments, delegated payments, and business collection tools beyond pilot phases. The shift from zero to 40 basis points MDR on payments above Rs 2,000, effective October 15, could generate a Rs 26,200-crore pool by fiscal 2028, with banks receiving around Rs 13,100 crore.
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