Banks, NPCI to ensure MDR not passed on: SBI
Chairman Setty says bank aspires to increase UPI transactions through Yono to 5cr per day
In a recent interview, SBI Chairman CS Setty expressed optimism about the potential of UPI to evolve into a point-of-sale credit platform. Setty revealed that approximately 96% of transactions will be exempt from MDR (Merchant Discount Rate), with the remaining transactions subject to stringent bank and NPCI controls to prevent passing on the costs to consumers.
The chairman emphasized that the primary purpose of MDR is to fund investments in technology, fraud-risk management, and capacity building, rather than generating revenue. SBI sees MDR as an opportunity to strengthen its position in the UPI ecosystem, which currently handles around 20 crore transactions daily, representing approximately 25% of the total ecosystem size.
The bank is committed to working with NPCI and other lenders to ensure MDR is not passed on to customers, and has developed technology to identify exempt transactions by October 15, when MDR is set to be implemented. Setty also highlighted the bank's ambitious plans for the UPI business, including driving greater usage of the SBI Yono app and expanding merchant acquiring to offline merchants.
Despite the ongoing geopolitical tensions, SBI remains confident in its capital expenditure plans, citing the resilience of the investment cycle.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
