RBI says it is premature to decide on MDR charges for UPI merchant payments
RBI Governor Sanjay Malhotra said any move to levy merchant discount rates on UPI is not imminent. The proposed law would enable a charge, but would require legislative approval and separate RBI guidelines; the government currently subsidises low-value payments for small merchants.
RBI Governor Sanjay Malhotra said it is premature to determine whether UPI merchant payments will face MDR charges. The proposed law enables a possible levy, while the government currently subsidises low-value payments to small merchants.
Why this matters
RBI's caution tempers recent UPI signals that MDR could return above ₹2,000 and affect large merchants. The central bank says any change would require legislation and separate guidelines.
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