MDR Debate Returns as RBI Signals UPI Costs Can't Stay Free Forever
What Happened
RBI Governor Sanjay Malhotra said "someone has to pay the cost" as discussions emerge around allowing merchant charges on some high-value UPI transactions through proposed legal changes. If implemented, MDR may initially apply only to large merchants and high-value payments above ₹2,000, while everyday consumer transactions are expected to remain unaffected.
Key Takeaways
India's free UPI model may face pressure as transaction volumes surge, with policymakers exploring ways to sustain the digital payments ecosystem.