RBI flags UPI funding needs, but says merchant fee debate is premature
RBI Governor Sanjay Malhotra said digital-payments infrastructure costs must be funded, while cautioning that it is too early to predict a return of merchant discount rates on UPI. Any future MDR, particularly on high-value transactions, could reshape payment-acceptance costs for retailers.
RBI Governor Sanjay Malhotra said it is premature to predict a return of merchant discount rates on UPI, while stressing digital-payments infrastructure requires funding. Potential MDR on high-value merchant transactions could affect Indian retailers’ payment acceptance costs.
Why this matters
The comments extend RBI’s digital-finance focus after the Supreme Court directed it to set bank SOPs for cyber-fraud recovery. RBI has also planned polymer Rs 10 and Rs 20 notes from FY28, subject to trials.
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