RBI Governor calls UPI merchant-fee talks premature as payments law changes advance
RBI Governor Sanjay Malhotra said discussion of merchant discount rates on UPI is premature while payment-law amendments are under way. Proposals reportedly include fees on transactions above Rs 2,000 or for larger merchants, potentially raising acceptance costs if adopted.
RBI Governor Sanjay Malhotra called UPI MDR discussions premature as the government amends payments law. Proposed merchant fees could apply above transaction or turnover thresholds, affecting merchant acceptance costs and creating a potential FY28 revenue pool for payment platforms and banks.
Why this matters
RBI’s stance follows its recent signal that UPI MDR talks remain under consideration and comes as it also targets a polymer currency-note rollout in early FY28.
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