UPI MDR decision completely professional, no external pressure: FM Sitharaman
Talking to PTI, Sitharaman said the decision was completely professional, and it was taken jointly by the National Payments Corporation of India (NPCI), payment banks and merchant banks, and not imposed by the government.
Finance Minister Nirmala Sitharaman firmly denied Opposition claims that the 0.4% Merchant Discount Rate (MDR) decision for UPI transactions over Rs 2,000 was influenced by external pressure. In an interview with PTI, she described the decision as a professional one taken jointly by the National Payments Corporation of India (NPCI), payment banks, and merchant banks, not imposed by the government.
Sitharaman explicitly dismissed allegations of yielding to foreign pressure, particularly from the US, stating the MDR is not a tax and will not benefit the government. She also rebuked Opposition criticism that the fee is a burden on consumers, emphasizing that the MDR collection will be shared among banks and entities in the UPI ecosystem, not going to the Consolidated Fund of India.
The new MDR, effective from October 15, applies to person-to-merchant UPI payments over Rs 2,000 and is capped at Rs 300 for transactions of Rs 75,000 or more. Essential services, including railways, telecom, fuel, and insurance, will have a flat Rs 5 fee per transaction over Rs 2,000. Small merchants, collecting up to Rs 1 lakh per month via UPI QR codes, are exempt from the MDR.
A dedicated fund for promoting UPI usage by small merchants will be established, with 5% of total MDR collections contributing to this initiative.
Written by urgent.news from Economic Times Tech's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
