UPI MDR decision completely professional, no external pressure: FM Sitharaman
Sitharaman rubbished the Opposition's allegations that the government had yielded to foreign pressure, saying the MDR was not a tax and would not accrue to the government
Finance Minister Nirmala Sitharaman has dismissed Opposition allegations that the 0.4% Merchant Discount Rate (MDR) on UPI transactions above ₹2,000 was imposed under external pressure, stating it was a professional decision by the National Payments Corporation of India (NPCI), payment banks, and merchant banks. She denied the opposition's claim that the government had yielded to foreign pressure, particularly from the U.S., and clarified that the MDR is not a tax or a cess, but a revenue-sharing mechanism among entities in the UPI ecosystem.
Sitharaman also dismissed claims that the MDR is a tax on consumers, emphasizing that the collected amount will be shared among banks and other entities in the UPI ecosystem, with 40% going to customers' banks, 30% to payment gateways, 20% to the UPI app, and 10% to the sponsoring bank of the UPI app.
Brief written by urgent.news from The Hindu's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- UPI MDR decision completely professional, no external pressure: FM Sitharaman economictimes.indiatimes.com
