RBI says no decision yet on MDR for UPI merchant payments
UPI merchant payments remain free for now, RBI Governor Sanjay Malhotra said. Any move to introduce merchant discount rates would require a separate policy decision and regulatory guidelines, even as lawmakers consider payment-law amendments.
RBI Governor Sanjay Malhotra said no decision has been made to impose MDR on UPI merchant payments. UPI remains free as lawmakers consider payment-law amendments; any merchant fee would need a separate policy decision and regulatory guidelines.
Why this matters
RBI’s stance pauses the cost debate flagged in signals on a proposed MDR framework for larger retail transactions, possible select-payment MDRs, and Bernstein’s estimate of 30–40 bps on high-value UPI payments.
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